Wed, Jul 27, 2011 - Page 10 News List

World Business Quick Take

Agencies

UNITED KINGDOM

Q2 GDP edged up 0.2%

Economic recovery remained lackluster after official figures released yesterday showed GDP rising by only 0.2 percent in the second quarter of the year. The preliminary growth figure, which is subject to revision, was in line with market expectations. The weak second quarter followed six months of essentially no growth, with a drop of 0.5 percent in the fourth quarter of last year followed by a gain of 0.5 percent in the first quarter.

INTERNET

Baidu profit surges 95%

Baidu Inc (百度), which operates China’s dominant search engine, said yesterday its quarterly profit jumped 95 percent on traffic growth and strong spending by big advertising customers. Profit for the three months ending June 30 was US$252.6 million and revenue rose 78.4 percent from a year earlier to 3.4 billion yuan (US$528.4 million), the Beijing-based company said. Baidu expects continued strong growth this year and forecast a 75.1 percent to 79.5 percent increase in total revenue for the July-to-September quarter.

INTERNET

Google buys PittPatt

Google on Monday said it had bought a computer vision startup spun out of the robotics institute at Carnegie Mellon University. The California-based Internet giant did not disclose the financial terms of its deal to buy Pittsburgh Pattern Recognition, referred to as “PittPatt,” which was launched in 2004. The founders of the company specialized in enabling machines to identify objects and spatial relationships between them.

SEMICONDUCTORS

ARM sales beat estimates

ARM Holdings PLC, the designer of chips used in Apple Inc’s iPhones, posted second-quarter revenues of £117.8 million (US$191 million), higher than the £109 million estimate in a Bloomberg survey of analysts. ARM predicted that revenue for the second half would be in line with market expectations. Meanwhile, French-Italian chipmaker STMicroelectronics reported on Monday disappointing quarterly results and a weak sales outlook. The company said second-quarter net profit rose 18 percent from a year ago to US$420 million on sales of US$2.57 billion. However, it warned that sales in the third quarter would be 2 to 5 percent lower than the second quarter.

INTERNET

Netflix warns of slow growth

US video giant Netflix reported on Monday revenue rose 52 percent in the second quarter to US$789 million, short of the US$791.5 million expected by Wall Street analysts, and said it expected slower US subscriber growth this quarter. Net profit was up 55 percent to US$68 million. Netflix CEO Reed Hastings said in a letter to shareholders he expected a recent pricing change to result in some US subscribers dropping the Internet streaming and DVD-by-mail service.

TELECOMS

RIM to lay off 2,000

Faced with tough competition and falling profits, BlackBerry maker Research In Motion Ltd (RIM) is cutting 2,000 jobs as part of a cost-savings plan announced last month and is shuffling some senior executives. The job cuts amount to about 10 percent of the company’s workforce. The company said on Monday it would notify affected employees this week. RIM also said it was naming two executives to take on different parts of the role of chief operating officer, after Don Morrison went on medical leave last month.

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