AT&T Fourth-Quarter Earnings Hurt by Pensions and Storm





Over the holiday season, AT&T sold a record number of smartphones. But its quarterly earnings took a hit from pension costs and Hurricane Sandy.


On Thursday, AT&T reported a loss in the fourth quarter of $3.9 billion, or 68 cents a share, up from a loss of $6.7 billion, or $1.12 a share, from the same quarter a year earlier.


The company said revenue was essentially flat at $32.6 billion.


Its adjusted per-share earnings were 44 cents a share, excluding pension costs, the impact of Hurricane Sandy and the sale of its advertising units. Wall Street analysts had expected 45 cents a share on earnings of $32.2 billion, according to Thomson Reuters.


“We had an excellent 2012,” said Randall Stephenson, AT&T’s chief executive, in a statement. “Looking ahead, our key growth platforms — mobile data, U-verse and strategic business services — all have good momentum with a lot of headroom,” Mr. Stephenson added.


The company, based in Dallas, said that it sold 10.2 million smartphones over the quarter, the most ever sold by any American carrier. A majority of those smartphones were iPhones: AT&T sold 8.6 million iPhones, in contrast with Verizon’s 6.2 million iPhones. AT&T, the second biggest carrier after Verizon Wireless, is in the process of a major network expansion. It said late last year that it would invest an extra $14 billion to expand its wireless and broadband services through 2015. It expects that its fourth-generation network technology, called LTE, will cover 300 million people by the end of next year.


Beyond making upgrades to its wireless network, AT&T has plans to offer new services that might create new revenue streams. In March, it will begin selling its new wireless home security system, Digital Life, which will allow people to use tablets or phones to monitor their homes from afar. If a burglar trips a motion sensor in the house, for example, a user can receive a text message, then call the police. Ralph de la Vega, chief executive of AT&T Mobility, has said that he believes home security will be a big opportunity to increase revenue, because only 20 percent of American homes have security systems, leaving millions of homeowners as potential buyers.


This article has been revised to reflect the following correction:

Correction: January 24, 2013

An earlier version of this article published online misstated the expectation of Wall Street analysts for AT&T’s quarterly per-share earnings. It was 45 cents, not 48 cents.



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Apple reports flat first-quarter earnings; shares drop 5%









Apple Inc. reported flat fiscal first-quarter earnings, sending shares plummeting 5% in after-hours trading.


Apple said revenue increased 18% to $54.5 billion in the first quarter, which ended in December. Profit rose only slightly to $13.08 billion, or $13.81 a share, from $13.06 billion, or $13.87, a year earlier.


Apple had previously told Wall Street analysts that for its first quarter, investors should expect the company to report $52 billion in revenue and $11.75 a share in earnings. The consensus among Wall Street analysts was that Apple would report $54.7 billion in revenue and $13.41 a share in earnings.





LIVE UPDATES: Apple shares plunge as earnings disappoint


In addition, Apple said it sold a record 47.8 million iPhones in the last quarter, up from the 37 million iPhones it sold in the same quarter in 2011. The company sold 22.9 million iPads, also a record, up from 15.4 million.


Despite the record number of iPhones sold, some analysts were expecting more.


“Meeting expectations is not enough for Apple,” said Colin Gillis of BGC Financial. “People are looking on the north side somewhere of 50 million phones. So that’s a little bit of a disappointment…. International sales were a little weaker than people expected. So we’ll see how that shakes out.”


“Overall, compared to other companies, it’s impressive,” said Patrick Moorhead of Moor Insights & Strategy. “But for Apple’s standards, it’s not great, but really good.


“I do think this somewhat fuels the perception that Apple is slowing down a bit, in terms of being able to consistently set expectations. And it’s driven by the fact that some of its competitors are catching up, and in some markets have already caught up.”


Immediately after the numbers were released, Apple's stock fell 4.5% to $490.48 in after-hours trading. During regular trading, shares rose $9.24, or 1.8%, to $514.01.


At 2 p.m., the company began its earnings calls with analysts. The Cupertino, Calif., company could hint at its upcoming plans for cheaper iPhones, new iPads and possibly some long-awaited TV news, although it seems unlikely for the typically tight-lipped company. Still, expect analysts to try their best to finagle information from Chief Executive Tim Cook and other company executives during the question-and-answer portion of the call.


For the current quarter, Apple said it expected revenue of $41 billion to $43 billion, gross margin of 37.5% to 38.5% and operating expenses of $3.8 billion to $3.9 billion.


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Google Fiber 'not a hobby,' could expand, tech giant's execs say


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Apple Shares Plunge 10 Percent After Hours On Earnings Decline And Revenue Miss



The law of large numbers kicked in Wednesday for Apple, which saw overall revenue just missing analyst estimates, despite the company racking up a record $13.1 billion in profits, the first year-over-year decline in over a decade.


Apple sold 22.9 million iPads and 47.8 million iPhones over the course of its holiday quarter, which spanned October through December, garnering the Cupertino company $13.1 billion in profits. The sales numbers, astonishing by all other counts, just beat analyst expectations of around $12.8 billion.


Investors certainly weren’t wowed by the numbers, sending Apple stock down almost 10 percent in after-hours trading. Since it hit a high of $704 in September, Apple stock has plummeted almost 30 percent on fears that growth for the world’s most valuable company has finally started to slow amid saturation of smartphones in the United States and tougher competition abroad from Samsung in particular.


And even if investors didn’t get everything they wanted in the numbers, Apple CEO Tim Cook put a very positive face on the quarter just reported and the year to come. “We’re thrilled with record revenue… and sales of over 75 million iOS devices in a single quarter,” Cook said in a release. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”


Under Cook’s guidance Apple unleashed a bevy of new products over its Q1: the fourth generation iPad, the smaller iPad mini, new iMacs. The iPhone 5, which went on sale in late September, also rolled out to additional international markets over the period including the world’s largest smartphone market China. The combination added up to massive sales.


But while the holiday season was strong, it may not have been strong enough to convince investors that Apple’s decade-long “hyper growth” period – marked by the launches of three revolutionary products: the iPod, which continues to dominate the MP3 player market; the iPhone, which became the smartphone to own for years; and the iPad, which kickstarted today’s tablet craze – can continue. The question everyone will be looking for Cook to answer this afternoon, is where will the next phase of growth come from?


Apple always provides conservative guidance for the next quarter and year to come, but today investors will be trying to discern whether what Cook says is just typical Apple conservatism or if there are signs that Apple is starting to worry itself.


For long-time tech analyst Cindy Shaw, a managing director with San Francisco-based Discern, this moment in time is reminiscent of another formerly white-hot tech company, Dell. In 2005 and 2006 Dell and its leader, Michael Dell could no wrong. Revenue was then a blistering $50 billion and Wall Street fell over itself with praise. Then the cracks started to show, customers began to voice complaints, and other options in the PC marketplace started to look pretty good. From antenna gate, to Apple’s self aggrandizing and hugely expensive new headquarters and the more recent maps snafu, Shaw is seeing a similar build-up of what she calls “small warning flags.” When the attention at Dell turned from adoration to suspicion, management had a very tough time responding in a way that satisfied investors (a trend that has clearly continued with Dell reportedly in talks to with financiers to take the company private again).


Apple is no Dell, but it’s a useful reminder of how fast and far companies can fall. Cook is in a very tough position because finding meaningful growth for a $156 billion company is going to be very tough. If he goes down market (hard for a high-end brand to do) he sacrifices margin, and the growth guys start screaming again. If he doesn’t deliver a mind-blowing new product that creates a new category, everyone screams innovation by Apple is dead. For investors the question to be asking, and the one that should have been front of mind as soon as Apple became the largest market cap company on the planet is: When do I sell?


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Sundance stars sound off on gun violence in film






PARK CITY, Utah (AP) — The Sundance Film Festival isn’t home to many shoot-em-up movies, but action-oriented actors at the festival are facing questions about Hollywood’s role in American gun violence.


Guy Pearce and Alexander Skarsgard are among those who say Hollywood shares in the blame.






Pearce is in Park City, Utah, to support the family drama “Breathe In,” but he’s pulled plenty of imaginary triggers in violent films such as “Lockdown” and “Lawless.” He says Hollywood may make guns seem “cool” to the broader culture, but there are vast variations in films’ approach to guns.


“Hollywood probably does play a role,” Pearce said. “It’s a broad spectrum though. There are films that use guns flippantly, then there are films that use guns in a way that would make you never want to look at a gun ever again — because of the effect that it’s had on the other people in the story at the time. So to sort of just say Hollywood and guns, it’s a broad palette that you’re dealing with, I think. But I’m sure it does have an effect. As does video games, as do stories on the news. All sorts of things probably seep into the consciousness.”


Skarsgard, who blasted away aliens in “Battleship,” says he agrees that Hollywood has some responsibility for how it depicts violence on-screen.


“When (NRA executive director) Wayne LaPierre blames it on Hollywood and says guns have nothing to do with it, there is a reason,” he said. “I mean, I’m from Sweden. . We do have violent video games in Sweden. My teenage brother plays them. He watches Hollywood movies. We do have insane people in Sweden and in Canada. But we don’t have 30,000 gun deaths a year.


“Yes, there’s only 10 million people in Sweden as opposed to over 300 (million) in the United States. But the numbers just don’t add up. There are over 300 million weapons in this country. And they help. They do kill people.”


Ellen Page, who co-stars with Skarsgard in “The East,” noted that gun restrictions are much more pervasive in her home country, Canada.


“You can’t buy some crazy assault rifle that is made for the military to kill people. And like that to me is just like a no-brainer,” she said. “Why should that just be out and be able to be purchased? That does not make me feel safe as a person.”


Skarsgard says it may be time to revisit the Second Amendment.


“The whole Second Amendment discussion is ridiculous to me. Because that was written over 200 years ago, and it was a militia to have muskets to fight off Brits,” he said. “The Brits aren’t coming. It’s 2013. Things have changed. And for someone to mail-order an assault rifle is crazy to me. They don’t belong anywhere but the military to me. You don’t need that to protect your home or shoot deer, you know.”


___


AP Entertainment Writer Ryan Pearson is on Twitter: www.twitter.com/ryanwrd .


Entertainment News Headlines – Yahoo! News





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Well: Long Term Effects on Life Expectancy From Smoking

It is often said that smoking takes years off your life, and now a new study shows just how many: Longtime smokers can expect to lose about 10 years of life expectancy.

But amid those grim findings was some good news for former smokers. Those who quit before they turn 35 can gain most if not all of that decade back, and even those who wait until middle age to kick the habit can add about five years back to their life expectancies.

“There’s the old saw that everyone knows smoking is bad for you,” said Dr. Tim McAfee of the Centers for Disease Control and Prevention. “But this paints a much more dramatic picture of the horror of smoking. These are real people that are getting 10 years of life expectancy hacked off — and that’s just on average.”

The findings were part of research, published on Wednesday in The New England Journal of Medicine, that looked at government data on more than 200,000 Americans who were followed starting in 1997. Similar studies that were done in the 1980s and the decades prior had allowed scientists to predict the impact of smoking on mortality. But since then many population trends have changed, and it was unclear whether smokers today fared differently from smokers decades ago.

Since the 1960s, the prevalence of smoking over all has declined, falling from about 40 percent to 20 percent. Today more than half of people that ever smoked have quit, allowing researchers to compare the effects of stopping at various ages.

Modern cigarettes contain less tar and medical advances have cut the rates of death from vascular disease drastically. But have smokers benefited from these advances?

Women in the 1960s, ’70s and ’80s had lower rates of mortality from smoking than men. But it was largely unknown whether this was a biological difference or merely a matter of different habits: earlier generations of women smoked fewer cigarettes and tended to take up smoking at a later age than men.

Now that smoking habits among women today are similar to those of men, would mortality rates be the same as well?

“There was a big gap in our knowledge,” said Dr. McAfee, an author of the study and the director of the C.D.C.’s Office on Smoking and Public Health.

The new research showed that in fact women are no more protected from the consequences of smoking than men. The female smokers in the study represented the first generation of American women that generally began smoking early in life and continued the habit for decades, and the impact on life span was clear. The risk of death from smoking for these women was 50 percent higher than the risk reported for women in similar studies carried out in the 1980s.

“This sort of puts the nail in the coffin around the idea that women might somehow be different or that they suffer fewer effects of smoking,” Dr. McAfee said.

It also showed that differences between smokers and the population in general are becoming more and more stark. Over the last 20 years, advances in medicine and public health have improved life expectancy for the general public, but smokers have not benefited in the same way.

“If anything, this is accentuating the difference between being a smoker and a nonsmoker,” Dr. McAfee said.

The researchers had information about the participants’ smoking histories and other details about their health and backgrounds, including diet, alcohol consumption, education levels and weight and body fat. Using records from the National Death Index, they calculated their mortality rates over time.

People who had smoked fewer than 100 cigarettes in their lifetimes were not classified as smokers. Those who had smoked at least 100 cigarettes but had not had one within five years of the time the data was collected were classified as former smokers.

Not surprisingly, the study showed that the earlier a person quit smoking, the greater the impact. People who quit between 25 and 34 years of age gained about 10 years of life compared to those who continued to smoke. But there were benefits at many ages. People who quit between 35 and 44 gained about nine years, and those who stopped between 45 and 59 gained about four to six years of life expectancy.

From a public health perspective, those numbers are striking, particularly when juxtaposed with preventive measures like blood pressure screenings, colorectal screenings and mammography, the effects of which on life expectancy are more often viewed in terms of days or months, Dr. McAfee said.

“These things are very important, but the size of the benefit pales in comparison to what you can get from stopping smoking,” he said. “The notion that you could add 10 years to your life by something as straightforward as quitting smoking is just mind boggling.”

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Media Decoder Blog: Adding Subscribers, Netflix Posts Surprise Profit

Netflix on Wednesday announced a surprise profit in the fourth quarter of 2012 and a new total of 27 million streaming subscribers in the United States, a jump of more than two million from the third quarter.

The company also added nearly two million new subscribers in other countries, though it continued to lose money overseas, as expected. Overall, however, the company reported $8 million in net income and $945 million in revenue. Analysts had expected a slight loss, not a profit, due to the rising costs of acquiring must-see streaming content.

Netflix’s fourth-quarter earnings exceeded not just Wall Street’s expectations but also its own, as the chief executive, Reed Hastings, and chief financial officer, David Wells, noted in a letter to investors. Revenues, they said, were driven in part by holiday season sales of new tablets and television sets.

Investors cheered the news, and at one point sent Netflix shares soaring more than 30 percent in after-hours trading.

The growth spurt in the fourth quarter attested to the popularity of on-demand libraries of television shows and movies. Streaming services by Amazon, Hulu, and Redbox are competing on the same playing field as Netflix, but for now Netflix is the biggest such service by far.

“The fact that our growth remains this strong despite intensifying competition, and our already substantial U.S. market penetration, underlines the large opportunity ahead,” Mr. Hastings and Mr. Wells wrote.

Netflix ended 2012 with 27.1 million streaming subscribers in the United States and 6.1 million elsewhere. On Wednesday it predicted that it would end the first quarter of 2013 with somewhere between 28.5 and 29.2 million in the United States and somewhere between 6.6 and 7.3 million elsewhere.

Net income will be about in line with the fourth quarter, Netflix said, since the revenue from new subscribers will be offset by licensing expenses and continuing declines in its DVD-by-mail business.

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Election of new DNC leaders points up tensions with White House









WASHINGTON -- After a messy fight that highlighted strains with the White House, the Democratic National Committee completed what should have been the routine election of a new slate of officers Tuesday.


As expected, Rep. Debbie Wasserman Schultz of Florida was given another term as national party chairwoman. But below that level, chaos reigned for a time as DNC members balked at rubber-stamping a White House-approved list of replacements for several veterans of the pre-Obama era.


Among the incoming DNC leaders are vice chairwomen Maria Elena Durazo, a Los Angeles labor official, and Tulsi Gabbard, the newly elected congresswoman from Hawaii. Henry R. Munoz III of San Antonio was named finance chairman, the first Latino in that post.





Complete coverage of the 2013 inauguration


But many on the DNC strongly resisted the forced removal of longtime activist Alice Travis Germond as DNC secretary. Highly popular with the membership, Germond, who calls the roll of the states at presidential nominating conventions, is only the third person to hold that job since 1944. In order to tighten its control of the DNC, the White House wanted to replace her with Stephanie Rawlings-Blake, the mayor of Baltimore, who has no experience in national politics.


Angered by the handling of the leadership change by Patrick Gaspard, a former Obama organizer who serves as the party’s executive director, DNC members tried to postpone election of the secretary until the fall. A clearly flustered Schultz, after halting the proceedings and huddling offstage with Germond, returned to announce that Germond had agreed to become secretary emeritus of the party and an at-large DNC member. With that, the slate of officers, including Rawlings-Blake, was approved.


The unexpected drama came only days after President Obama announced creation of his new national advocacy operation, Organizing for Action, widely seen as undermining the DNC’s already weakened status as a political organization.


Schultz, who was Obama’s pick as party chairwoman during his first term, defended the president’s decision, telling the DNC that the new Obama group didn’t pose a threat to the national party.


PHOTOS: President Obama’s second inauguration


Schultz said that she was “thrilled” that Obama’s campaign hadn’t ended with the 2012 election and that his new organization would be “complementing the work we are doing.” She said the Obama group would be training and engaging grass-roots volunteers “so that our work at the Democratic Party can continue to be about electing Democrats up and down the ballot.”


The dispute during the meeting at a Washington hotel, one day after Obama’s inaugural celebration, dragged on for so long that Vice President Joe Biden was forced to cool his heels in a nearby ballroom until the DNC members finished their business.


Although the party organization’s influence may be fading, the hundreds of national committee members still retain at least one measure of clout: They are automatic “superdelegates” to the Democrats’ presidential nominating conventions (though Obama aides briefly considered, and then rejected, getting rid of their delegate power several years ago).


Biden, who would covet those DNC delegate votes if he ran for president in 2016, eventually was able to schmooze with the members at a private reception after the meeting.


PHOTOS: Past presidential inaugurations


Follow Politics Now on Twitter and Facebook


Paul.west@latimes.com


Twitter: @paulwestdc





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LG's Next Flagship, the Optimus G Pro, Outed by Japanese Carrier











LG is already prepping its next handset, the Optimus G Pro, for launch, even though the Optimus G — the basis for the Google’s Nexus 4 — appeared just five months ago and is still rolling out in 50 new markets.


The Optimus G Pro is slated for an April release date, according to Japanese carrier NT DoCoMo. The company detailed its smartphone lineup, which includes the Optimus G Pro, on Tuesday. It’s remarkable, because LG hasn’t formally announced the phone yet, and the rumor is that won’t happen until Mobile World Congress in Barcelona next month.


According to NT DoCoMo, the Optimus G Pro will feature a 5-inch, 1080-display, Qualcomm’s Snapdragon S4 quad-core CPU, 2GB of RAM, 32GB of built-in storage and 4G LTE connectivity. It’ll run Google’s Android 4.1 Jelly Bean operating system. Since LG hasn’t officially acknowledged the phone’s existence, we don’t know for certain whether it’ll land in the United States. But, the fact the Optimus G is sold here by AT&T and Sprint — and the Nexus 4 has gotten all kinds of critical acclaim — it’s a safe bet the Optimus G Pro will arrive on our shores sometime this year.






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Sundance 2013: Breaking Glass Pictures acquires “Amelia’s 25th,” “Silver Case”






LOS ANGELES (TheWrap.com) – Breaking Glass Pictures has acquired the rights to “Amelia’s 25th” and “Silver Case,” the distributor announced on Monday.


Neither of the films will be screened at Sundance.






“Amelia’s 25th” stars Jennifer Tilly, Danny Trejo, Electra Avellan and Robert Rodriguez, who directed Trejo and Avellan in “Machete.” The film, directed by Martín Yernazian, follows the titular character (Avellan), a struggling Los Angeles actress about to turn 25.


Breaking Glass CEO Rich Wolff brokered the deal with Karin Kelts of KMK Productions.


Wolff also negotiated the deal with “Silver Case” director Christian Filippella for the North American release of the film, starring Eric Roberts and Vincent DePaul.


“Silver Case” tells the tale of a Hollywood producer concocting a scheme to derail the career of his rival.


Movies News Headlines – Yahoo! News




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The Well Column: Facing Cancer, a Stark Choice

In the 1970s, women’s health advocates were highly suspicious of mastectomies. They argued that surgeons — in those days, pretty much an all-male club — were far too quick to remove a breast after a diagnosis of cancer, with disfiguring results.

But today, the pendulum has swung the other way. A new generation of women want doctors to take a more aggressive approach, and more and more are asking that even healthy breasts be removed to ward off cancer before it can strike.

Researchers estimate that as many as 15 percent of women with breast cancer — 30,000 a year — opt to have both breasts removed, up from less than 3 percent in the late 1990s. Notably, it appears that the vast majority of these women have never received genetic testing or counseling and are basing the decision on exaggerated fears about their risk of recurrence.

In addition, doctors say an increasing number of women who have never had a cancer diagnosis are demanding mastectomies based on genetic risk. (Cancer databases don’t track these women, so their numbers are unknown.)

“We are confronting almost an epidemic of prophylactic mastectomy,” said Dr. Isabelle Bedrosian, a surgical oncologist at M. D. Anderson Cancer Center in Houston. “I think the medical community has taken notice. We don’t have data that say oncologically this is a necessity, so why are women making this choice?”

One reason may be the never-ending awareness campaigns that have left many women in perpetual fear of the disease. Improvements in breast reconstruction may also be driving the trend, along with celebrities who go public with their decision to undergo preventive mastectomy.

This month Allyn Rose, a 24-year-old Miss America contestant from Washington, D.C., made headlines when she announced plans to have both her healthy breasts removed after the pageant; both her mother and her grandmother died from breast cancer. The television personality Giuliana Rancic, 37, and the actress Christina Applegate, 41, also talked publicly about having double mastectomies after diagnoses of early-stage breast cancer.

“You’re not going to find other organs that people cut out of their bodies because they’re worried about disease,” said the medical historian Dr. Barron H. Lerner, author of “The Breast Cancer Wars” (2001). “Because breast cancer is a disease that is so emotionally charged and gets so much attention, I think at times women feel almost obligated to be as proactive as possible — that’s the culture of breast cancer.”

Most of the data on prophylactic mastectomy come from the University of Minnesota, where researchers tracked contralateral mastectomy trends (removing a healthy breast alongside one with cancer) from 1998 to 2006. Dr. Todd M. Tuttle, chief of surgical oncology, said double mastectomy rates more than doubled during that period and the rise showed no signs of slowing.

From those trends as well as anecdotal reports, Dr. Tuttle estimates that at least 15 percent of women who receive a breast cancer diagnosis will have the second, healthy breast removed. “It’s younger women who are doing it,” he said.

The risk that a woman with breast cancer will develop cancer in the other breast is about 5 percent over 10 years, Dr. Tuttle said. Yet a University of Minnesota study found that women estimated their risk to be more than 30 percent.

“I think there are women who markedly overestimate their risk of getting cancer,” he said.

Most experts agree that double mastectomy is a reasonable option for women who have a strong genetic risk and have tested positive for a breast cancer gene. That was the case with Allison Gilbert, 42, a writer in Westchester County who discovered her genetic risk after her grandmother died of breast cancer and her mother died of ovarian cancer.

Even so, she delayed the decision to get prophylactic mastectomy until her aunt died from an aggressive breast cancer. In August, she had a double mastectomy. (She had her ovaries removed earlier.)

“I feel the women in my family didn’t have a way to avoid their fate,” said Ms. Gilbert, author of the 2011 book “Parentless Parents,” about how losing a parent influences one’s own style of parenting. “Here I was given an incredible opportunity to know what I have and to do something about it and, God willing, be around for my kids longer.”

Even so, she said her decisions were not made lightly. The double mastectomy and reconstruction required an initial 11 1/2-hour surgery and an “intense” recovery. She got genetic counseling, joined support groups and researched her options.

But doctors say many women are not making such informed decisions. Last month, University of Michigan researchers reported on a study of more than 1,446 women who had breast cancer. Four years after their diagnosis, 35 percent were considering removing their healthy breast and 7 percent had already done so.

Notably, most of the women who had a double mastectomy were not at high risk for a cancer recurrence. In fact, studies suggest that most women who have double mastectomies never seek genetic testing or counseling.

“Breast cancer becomes very emotional for people, and they view a breast differently than an arm or a required body part that you use every day,” said Sarah T. Hawley, an associate professor of internal medicine at the University of Michigan. “Women feel like it’s a body part over which they totally have a choice, and they say, ‘I want to put this behind me — I don’t want to worry about it anymore.’ ”


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