Data thefts cost companies $2 million a year: Study 
February 23, 2010
Source:  Bloomberg

SAN FRANCISCO: The theft of trade secrets and customer information cost companies an average of $2 million each last year, according to research conducted by security software maker Symantec Corp.

In a survey of 2,100 information-technology executives worldwide, 75% of respondents reported cyber attacks last year. Most intrusions were aimed at stealing a company’s intellectual property, such as product designs, according to the study released on Monday.

“We can expect to see companies going out of business because their intellectual property is stolen,” Maureen Kelly, a senior director of product marketing, said in an interview. “For some, this is a matter of life or death.”

Protecting corporate data has become more difficult, California-based Symantec said. Businesses coped with the recession by trimming staff to handle security, while hackers have become more skilful. Last month, Google said it and at least 20 other companies had suffered a series of ‘highly sophisticated’ online attacks originating in China.

Similar attacks have been carried out for at least 18 months on about 100 companies, a security expert who asked not to be identified, said last week.

In many cases, hackers have switched their attentions to stealing trade secrets, according to Symantec, the No. 1 maker of security software.

“While hackers are still looking for customer data, such as credit card information, they are now going more for industrial espionage and counterfeiting,” Kelly said in an interview.

“They are also more specialised — with one person to break in, another to get the data, a third to install the software to steal information, and a fourth to encrypt it and distribute it,” she said.

Symantec rose 5 cents to $17.17 on February 19 in Nasdaq Stock Market trading. The shares advanced 32 % last year.

HP raises 2010 outlook as results beat Street view
February 23, 2010
SOURCE : REUTERS

SAN FRANCISCO: Hewlett-Packard Co posted better-than-expected results on strong server and personal computer sales and a resurgence in its printing business, and the company raised its full-year outlook.

Analysts say HP is well-positioned to benefit from an expected surge in enterprise technology spending in 2010, as businesses replace aging equipment. The company said the so-called refresh cycle is underway, with more strength anticipated in the back half of the year.

Its profitable printing business rebounded from a slump during the recession, with sales rising 4 percent in the fiscal first quarter, and higher-margin supplies revenue growing 1 percent. Sales of laser printers, however, were hurt by supply constraints.

HP's server business benefited from higher average prices. Revenue from industry standard servers surged 27 percent.

HP, which under Chief Executive Mark Hurd has pursued multibillion-dollar acquisitions to move into higher-margin business such as IT services, has met or beaten Wall Street earnings expectations every quarter for more than two years.

For 2010, it forecast earnings, excluding items, of $4.37 to $4.44 a share on revenue of $121.5 billion to $122.5 billion, up from its previous estimate of $4.25 to $4.35 a share on $118 billion to $119 billion.

Collins Stewart analyst Louis Miscioscia said the hardware business outperformed his expectations.

"IT (information technology) is starting to come back. We're seeing it right now in the numbers here. I think 2010 is going to be a good year for tech," he said.

In a sign of improving corporate demand, data storage equipment manufacturer NetApp Inc also issued forecasts on Wednesday that were ahead of expectations.

For a graphic on Hewlett-Packard earnings, please click link.reuters.com/dut99h

HP generates more than three-fifths of its revenue internationally, and the company said sales from fast-growing emerging countries Brazil, Russia, India and China leapt 41 percent from a year earlier. But Europe remained be weak, with sales up a mere 1 percent.

"Domestically, you have some of the macro headwinds subsiding. Europe is still a wild card, but the strength in emerging markets more than offsets any weakness," said Northeast Securities analyst Ashok Kumar.

HP, the world's top PC vendor, saw revenue in that segment rise 20 percent. Chief Financial Officer Cathie Lesjak noted that PC revenue in China alone nearly doubled in the quarter.

"We executed very well, especially in the hardware business," Lesjak said in an interview.

POISED FOR THE REBOUND?

Shares of the world's largest technology company by sales climbed 1 percent in after-hours trading on Wednesday.

HP's gross margin for the quarter came in at 22.8 percent, down from last year and below analysts' forecasts, due to strength in lower-margin PC and printer hardware.

HP reported net income of $2.3 billion, or 96 cents a share, in its fiscal first quarter ended Jan. 31, up from $1.9 billion, or 75 cents a share, in the year-ago period.

Excluding items, it earned $1.10 a share, beating the average Wall Street estimate of $1.06 a share, according to Thomson Reuters I/B/E/S.

Net revenue rose 8 percent to $31.2 billion, versus the average analyst forecast of $30 billion.

HP ranks No. 1 or 2 in a diverse array of technology segments, including PCs, services, printers and servers, following several high-profile buys spearheaded by Hurd including 3Com in 2009 and a $13 billion deal for Electronic Data Systems in 2008.

Hurd, who succeeded Carly Fiorina in 2005 and has earned a reputation on Wall Street as an aggressive cost-cutter, has kept the company focused on integrating its purchases and weaning away expenses.

Personal computers make up roughly a third of HP's sales, with services accounting for another 30 percent. The printing segment comprises about a fifth of HP's revenue, but provided around 30 percent of its operating profit last year.

HP shares are up around 45 percent from a year ago, versus a roughly 40 percent rise for arch-rival International Business Machines Corp.

Shares of Palo Alto, California-based HP closed at $50.12 on the New York Stock Exchange and rose to $50.56 in extended trading.

Wipro says employee embezzles funds, probe on
February 23, 2010
SOURCE: IANS

BANGALORE: IT major Wipro Technologies on Wednesday said it has detected embezzlement by one of its employees and the probe is on. The company did not give details of the fraud, but speculation was that it was around $4 million.

"In December 2009, we noticed embezzlement by one of our employees. Pursuant to an investigation that is ongoing, steps have and are being taken by the company addressing the processes and people issues," Suresh Senapaty, executive director and chief finance officer of Wipro, said in a statement.

The statement did not give any other details.

The employee was working in the finance department and could have defrauded the company of up to $4 million, company sources said.

The company spokesperson declined to give details of the amount embezzled and whether a complaint has been lodged with the police or whether the employee has been handed over to police.