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Apple Stands Firm On CEO Steve Jobs’ Return In June

Aviv — Wed, 25 Feb 2009 23:56:32 +0000

Apple’s annual shareholder meeting was relatively quiet. Aside from the by-the-book motives of some parties who grilled Apple execs about Steve Jobs, no journalists or reporters were allowed to directly relay information to the press, and as usual Apple did not release a transcript.

Macworld notes that one of the first questions asked at Wednesday’s annual shareholder meeting was directly centered around Apple CEO Steve Jobs, his health and his return to Apple. Jobs is currently on a medical leave from Apple until June, and the last we heard was that the SEC was launching an official investigation into the situation.

Even though some sites are sensationalizing Wednesday’s shareholder meeting by saying that it was “dominated by politics”, it was not. This is standard affair and every year Apple’s board advises its shareholders to steer clear of these potentially fruitless affairs. Why these other websites would attempt to create a seemingly turbulent environment remains unknown. However, because of the unfortunate visibility shed, their reports may get echoed.

As we made available in Apple’s proxy report before the meeting, and outlined here, shareholders were voting on certain proposals that could potentially change or alter the way Apple handles some of its fiscal reports, and even shed light onto trade-secret partnerships. However, on rather known guidance from Apple’s board, shareholders voted against every single one of these proposals. As far as the business side of things during the meeting, they were standard affair.

“A shareholder asked whether Apple’s board of directors had kept investors in the dark about the status of Jobs’ health and inquired about a succession plan. Board member Arthur Levinson, who is also chairman and CEO of biotech firm Genentech, replied that the board disclaims information that it deems important and proper, and that it talks regularly about a succession plan.

Otherwise, the meeting served largely to have executives assure shareholders that the company was on the right track. Filling in for Jobs—and donning a Jobs-like pair of blue jeans and black (though collared, not turtleneck) shirt—chief operating officer Tim Cook cited strong Mac, iPod, and iPhone sales in the last year and hailed the App Store as “absolutely the envy of the industry.” He also reassured shareholders that he was “very confident of our product pipeline,” Jonathan Seff explains for Macworld.

Another question asking for clarification about Apple’s decision to pull out of Macworld was answered by Apple COO Tim Cook and chief financial officer Peter Oppenheimer. When asked whether Apple would ever reconsider the move, Cook explained that they have “very fond memories” of the Macworld Expo, however reiterated the company’s stance on utilizing their retail chain of 250 stores to create “many, many Macworlds each week.”

Notably, the audience sang Steve Jobs “Happy Birthday” in lieu of his 54th birthday on Tuesday, and tim Cook promised that Jobs would get the message.

Thanx to 9to5mac for the image

Annual Apple Shareholders Meeting, Proxy Statement Made Available

Aviv — Wed, 25 Feb 2009 17:02:34 +0000

Ahead of Apple’s 2009 Annual Meeting of Shareholders, we have made available the official proxy statement, as well as the company’s annual 10k report.

Questions about Apple CEO Steve Jobs are to be expected, and above all else, expect Apple to tiptoe around the subject. Ever since it was reported that the SEC was launching an official investigation into Steve Jobs’ recent health issues, the speculation has ramped up, and everyone with an opinion has made sure to chime in.

For Download: 2009 APPLE ANNUAL MEETING OF SHAREHOLDERS STATEMENTS

What items will be voted on at the Annual Meeting?

Shareholders will vote on five items at the Annual Meeting:
• the election to the Board of the eight nominees named in this Proxy Statement (Proposal No. 1);
• a shareholder proposal regarding a political contributions and expenditures report, if properly presented
at the Annual Meeting (Proposal No. 2);
• a shareholder proposal regarding the adoption of principles for health care reform, if properly presented
at the Annual Meeting (Proposal No. 3);
• a shareholder proposal regarding a sustainability report, if properly presented at the Annual Meeting
(Proposal No. 4); and
• a shareholder proposal regarding an advisory vote on compensation, if properly presented at the Annual
Meeting (Proposal No. 5).

What are the Board’s voting recommendations?

The Board recommends that you vote your shares:
• “FOR” each of the nominees to the Board (Proposal No. 1);
• “AGAINST” the shareholder proposal regarding a political contributions and expenditures report
(Proposal No. 2);
• “AGAINST” the shareholder proposal regarding the adoption of principles for health care reform
(Proposal No. 3);
• “AGAINST” the shareholder proposal regarding a sustainability report (Proposal No. 4); and
• “AGAINST” the shareholder proposal regarding an advisory vote on compensation (Proposal No. 5).

Former Apple Enterprise VP Takes Over as 3VR CEO

Dave — Tue, 10 Feb 2009 18:11:34 +0000

3VR Security announced yesterday that Al Shipp, former vice president of the enterprise division at Apple, will be taking over as the company’s CEO effective immediately.

Shipp will join 3VR as a well known technology executive, known for building Apple’s sales and marketing group where he was able to triple business in a mere 18 months. “Under Shipp’s leadership, Apple’s Enterprise Division quickly became one of its most profitable business units. His leadership at the company also included hands-on responsibility for worldwide support and the formation of key industry partnerships.”

Shipps departure from Apple back in November had those working under him now reporting to John Brandon, the Senior Vice President of Sales, Americas, and Asia Pacific. The Mac Observer adds that such execs include: Stuart Maclennan, a Director responsible for non-governmental territory sales; David Puklin, a Director responsible for named accounts; and Ron Police, the Vice President of Federal and Government Sales.

Before working at Apple, Shipp has harbored a lengthy career in technology, serving as president of Critical Path, senior VP at Ikntomi Corp., and president of the eCommerce Server and Worldwide Sales Divisions at BEA Systems.

Security Director News notes that there are some similarities between what Shipp has been recruited for a 3VR and what had experienced at Apple, noting that “”Apple was trying to work its way into the market that, frankly, it wasn’t good at. It had great products and technology, but customers didn’t know how to take it. 3VR has a similar challenge. It is in a fairly low technology spot with a high technology offering. We need to help our partners develop that value, it is a similar challenge.”

Shipp notes the importance of working together with 3VR’s channel partners to build and improve relationships and opportunites and further added that “by helping the [end user] understand the value 3VR brings” will also help integrators be as effective as possible.”

SEC Steve Jobs Health Investigation Underway, ‘Materiality’ the Root

Aviv — Mon, 02 Feb 2009 19:16:23 +0000

The Securities and Exchange Commission is officially investigating whether Apple and CEO Steve Jobs misled investors and shareholders by manipulating or withholding “material information” from the public.

As the Wall Street Journal explains, “This investigation exemplifies how the agency has run amok.” Reeling from low public confidence in the trade commission and SEC in general, especially after the Bernie Madoff scandal, this investigation leans on whether Steve Jobs’ private and confidential health information, should remain private.

Bloomberg initially reported that the SEC was prodding around the issue and was on the verge of launching a full blown investigation. It turns out the information was true as the SEC is now trying to determine whether Apple execs have kept “material” information from shareholders and investors. “…under federal securities laws, it is a serious felony — securities fraud — for corporate officials to disseminate false material information, or to fail to disclose true material information related to the company’s financial prospects,” the WSJ explains.

However, the actual definition of the term “material information” is at play here. Understandably, the term’s core intentions are to bring to light information that shareholders and investors need to know when making financial decisions about a certain company and its stock. Whether Apple CEO Steve Jobs’ personal health information is of “material” value, may remain up to the SEC to decide.

“The SEC’s investigation is the latest in a long history not only of incompetence, but of connivance with Department of Justice prosecutors. The absence of a comprehensive definition of “fraud” has enabled the SEC to harass, and the DOJ to prosecute, businessmen who engage in seemingly normal professional behavior. Such investigations and prosecutions — for “securities fraud” as well as the equally malleable “mail fraud” and “wire fraud” — have become the hallmark of prosecutorial juggernauts since the mid-1980s. The same technique, based upon an absence of clear definitions, is used against a vast array of people in other fields, from accountants to artists,” the Wall Street Journal explains.

As it stands the SEC will continue on with their investigation, and Apple will need to somehow prove that they did not withhold material information from investors and shareholders.

Read More about the latest surrounding Apple and CEO Steve Jobs’ health issues:
READ → – Apple CEO Steve Jobs Takes Leave of Absence Until June (Full Email)
READ → – Apple and CEO Steve Jobs Entangled in Endless Speculation
READ → – Steve Wozniak: Leave Steve Jobs Alone
READ → – Steve Wozniak Sheds Some Light On Steve Jobs’ Health Issues (Video)
READ → – Apple’s Health Disclosures About Steve Jobs Lead to SEC Review
READ → – Another Fake Steve Jobs Heart Attack Rumor Published Online
READ → – A Perfect Example of How Steve Jobs’ Health Issues Are Exploited

Mark Papermaster Case Settled, Begins Work at Apple on April 24th

Aviv — Tue, 27 Jan 2009 21:02:34 +0000

An ongoing legal battle between Apple and IBM over a poached expert chip designer named Mark Papermaster has finally been put to rest.

In a press release, printed verbatim below, Apple announced the arrival of Papermaster, who begins work on April 24th, 2009.

Mark Papermaster to Begin at Apple as Senior Vice President of Devices Hardware Engineering on April 24

CUPERTINO, California—January 27, 2009—Apple® today announced that Mark Papermaster will be coming to Apple as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs, on April 24. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod® and iPhone™ hardware engineering teams. The litigation between IBM and Mark Papermaster has been resolved.

Papermaster has 25 years of product and technology experience, and was previously a vice president at IBM. He has a Bachelor of Science degree in Electrical Engineering from the University of Texas, and a Master of Science in Electrical Engineering from the University of Vermont in 1988. Papermaster is active with the University of Texas where he is a member of the Electrical and Computer Engineering Advisory Council.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

IBM has also issues a statement (via Cnet):

IBM and Mr. Papermaster have now agreed on a resolution of the lawsuit under which Mr. Papermaster may not begin employment with Apple until April 24, 2009, six months after leaving IBM, and will remain subject thereafter to all of his contractual and other legal duties to IBM, including the obligation not to use or disclose IBM’s confidential information.

Following commencement of his employment with Apple, Mr. Papermaster will be required to certify, in July 2009 and again in October 2009, that he has complied with his legal obligations not to use or disclose IBM’s confidential or proprietary information.

The preliminary injunction will be replaced by a court order (PDF) under which the court will have continuing jurisdiction over this matter, including compliance enforcement powers, until October 24, 2009, one year after Mr. Papermaster’s departure from IBM.

Get caught up on the Mark Papermaster Saga below:

READ → – Papermaster Ordered to Stop Working, Claims He Did Nothing Wrong
READ → – Mark Papermaster’s Bio Removed From Apple’s Website
READ → – Judge Orders IBM to Pay $3 Million Papermaster Bond
READ → – Senior VP of Enterprise Sales Leaving Apple, No Replacement
READ → – Apple and IBM Set to Clash Over Executive Poaching
READ → – Apple Poaches Top IBM Chip Designer, IBM Sues Back
READ → – Tony Fadell, Senior VP of iPod Division, Leaves Apple

Full Steve Ballmer Memo About Microsoft Laying Off Thousands

Aviv — Thu, 22 Jan 2009 17:48:02 +0000

In some rather dismal news, Microsoft will be laying off thousands of employees based on horribly missed expectations for Q2. The cuts will be centered around Redmond, and the full memo from CEO Steve Ballmer to Microsoft employees can be found below.

As SiliconAlley notes, the layoffs will be happening in all of Microsoft’s divisions, such a “Research & Development, marketing, sales, finance, legal, HR, and IT,” and will completed over the next 18 months.

From: Steve Ballmer
To: All Microsoft FTE
Subject: Realigning Resources and Reducing Costs

In response to the realities of a deteriorating economy, we’re taking important steps to realign Microsoft’s business. I want to tell you about what we’re doing and why.

Today we announced second quarter revenue of $16.6 billion. This number is an increase of just 2 percent compared with the second quarter of last year and it is approximately $900 million below our earlier expectations.

The fact that we are growing at all during the worst recession in two generations reflects our strong business fundamentals and is a testament to your hard work. Our products provide great value to our customers. Our financial position is solid. We have made long-term investments that continue to pay off.

But it is also clear that we are not immune to the effects of the economy. Consumers and businesses have reined in spending, which is affecting PC shipments and IT expenditures.

Our response to this environment must combine a commitment to long-term investments in innovation with prompt action to reduce our costs.

During the second quarter we started down the right path. As the economy deteriorated, we acted quickly. As a result, we reduced operating expenses during the quarter by $600 million. I appreciate the agility you have shown in enabling us to achieve this result.
Now we need to do more. We must make adjustments to ensure that our investments are tightly aligned with current and future revenue opportunities. The current environment requires that we continue to increase our efficiency.

As part of the process of adjustments, we will eliminate up to 5,000 positions in R&D, marketing, sales, finance, LCA, HR, and IT over the next 18 months, of which 1,400 will occur today. We’ll also open new positions to support key investment areas during this same period of time. Our net headcount in these functions will decline by 2,000 to 3,000 over the next 18 months. In addition, our workforce in support, consulting, operations, billing, manufacturing, and data center operations will continue to change in direct response to customer needs.

Our leaders all have specific goals to manage costs prudently and thoughtfully. They have the flexibility to adjust the size of their teams so they are appropriately matched to revenue potential, to add headcount where they need to increase investments in order to ensure future success, and to drive efficiency.

To increase efficiency, we’re taking a series of aggressive steps. We’ll cut travel expenditures 20 percent and make significant reductions in spending on vendors and contingent staff. We’ve scaled back Puget Sound campus expansion and reduced marketing budgets. We’ll also reduce costs by eliminating merit increases for FY10 that would have taken effect in September of this calendar year.

Each of these steps will be difficult. Our priority remains doing right by our customers and our employees. For employees who are directly affected, I know this will be a difficult time for you and I want to assure you that we will provide help and support during this transition. We have established an outplacement center in the Puget Sound region and we’ll provide outplacement services in many other locations to help you find new jobs. Some of you may find jobs internally. For those who don’t, we will also offer severance pay and other benefits.

The decision to eliminate jobs is a very difficult one. Our people are the foundation of everything we have achieved and we place the highest value on the commitment and hard work that you have dedicated to building this company. But we believe these job eliminations are crucial to our ability to adjust the company’s cost structure so that we have the resources to drive future profitable growth. I encourage you to attend tomorrow’s Town Hall at 9am PST in Café 34 or watch the webcast .

While this is the most challenging economic climate we have ever faced, I want to reiterate my confidence in the strength of our competitive position and soundness of our approach.

With these changes in place, I feel confident that we will have the resources we need to continue to invest in long-term computing trends that offer the greatest opportunity to deliver value to our customers and shareholders, benefit to society, and growth for Microsoft.

With our approach to investing for the long term and managing our expenses, I know Microsoft will emerge an even stronger industry leader than it is today.

Thank you for your continued commitment and hard work.
Steve

Tim Cook’s Aggressive Stance Towards Suing Patent Violaters (Palm?)

Aviv — Thu, 22 Jan 2009 00:29:08 +0000

In Apple’s Q1 financial results earnings call, COO Tim Cook made some particularly aggressive statements pertaining to competitors violating patents Apple holds. When looking at the marketplace, Palm should most likely be prepared to defend the newly announced Palm Pre.

After reiterating Apple’s stance on the netbook category, COO Tim Cook shifted positions to talk about iPhone competitors and how Apple will react to those seemingly “ripping off” Apple’s IP. As TechCrunch notes, some of Cook’s comments sound particularly aggressive.

We approach this business as a software platform business. We are watching the landscape. We like competition as long as they don’t rip off our IP. And if they do, we will go after anyone who does.

This definitely seems directed squarely at Palm. Seeing as how former Apple engineer Jon Rubinstein is spearheading the Pre project over at Palm, there definitely seems to be conflicting issues here. We’ve already stated that Apple should take notice of the Pre, as we’re sure they have. But a heavyweight lawsuit between Apple and Palm over the use of multi-touch technology could be substantial.

Even though the messages seem to be directed at Palm, when asked about a specific company, Cook didn’t name names, which is to be expected. However, Google’s Android phone is developed with a completely open source platform, and with respect to the device, multi-touch technology is in question here, which the G1 lacks.

I don’t want to talk about any specific company. We are ready to suit up and go against anyone. However, we will not stand for having our IP ripped off.

On one hand, suing Palm and wrestling control away from competition would favor Apple, but in turn it may hinder global innovation. We were rather surprised and relieved to see the Pre, even though we knew deep down a lawsuit may brew. But the give and go with this level of innovation between two companies like Apple and Palm would only make for better results for the end users and consumers.

Instead of lawsuits, we’d like to see this settled with the separation of proprietary technology. But for that to happen, Palm needs to reveal how its multi-touch interface and operating system function. If that technology impedes on Apple’s patents, Palm might need a plan B.

IBM Seeks to Interview Apple Execs In Papermaster Case

Aviv — Tue, 02 Dec 2008 18:24:51 +0000

IBM seeks information directly from Apple’s top line executives regarding the ongoing Papermaster lawsuit, which IBM hopes to win in order to prevent Papermaster from joining Apple Inc.

The ongoing saga has grown tiresome in the last few weeks. In a nutshell, Apple has seemingly poached Mark Papermaster, a skilled chip design guru, from IBM. Big blue was not too fond of this, so they filed a lawsuit hoping to prevent Papermaster from joining Apple Inc.

Computerworld explains: IBM has asked for information from several unnamed senior officials at Apple Inc. as part of the discovery process in the lawsuit to block a former executive from joining Apple, according to court documents made public yesterday.

Those documents also revealed that the federal judge overseeing the case denied IBM’s request to postpone the trial while awaiting a decision from an appellate court.

As Cult of Mac notes, “Papermaster, a 26-year executive of the technology company, has asked his former employer to provide “all documents since 2006″ regarding IBM business planning and the server business, according to the report.” Additionally, IBM has failed to delay the ongoing trial until a decision is made regarding Papermaster’s appeal. The trial is set to begin on or prior to February 24, 2009.

As the Papermaster case evolves, we will provide coverage of notable news that unfolds. The entire case will be entering a series of back and forth negotiations over the next few weeks, and most of what we here will not be substantial information.

Quad-Core iMacs in January, Snow Leopard Drops in Q1 of 2009?

Aviv — Wed, 19 Nov 2008 16:04:01 +0000

Snow Leopard Early Next Year

Last week, Apple’s Director of Engineering of Unix Technologies Jordan Hubbard spoke at LISA ‘08, about the evolution of Mac OS X from large servers to embedded platforms. In his presentation slides (PDF) Hubbard reveals that Apple’s next version of Mac OS X 10.6 (Snow Leopard), will be shipping in the first quarter of 2009.

“When Apple first previewed Snow Leopard at the Worldwide Developers Conference 2008, they simply stated that Snow Leopard would ship “in about a year” from the announcement. A Q1 release would deliver it earlier than most had expected and makes it conceivable that we could see a demo or announcement at Macworld San Francisco 2009,” Arnold Kim explains for MacRumors.

Snow Leopard, as we’ve explained before, will focus primarily on performance under the hood. Rather than take this release to introduce new features to the operating system, Apple is refining the code and making sure that OS X’s base architecture is perfect. Additionally, added support for multi-core processors and GPU gaming is a major focus for Apple. While a lot of hardware currently offers such high-end performance, unless a machine’s operating system can exploit the power, it will go relatively unused. With Snow Leopard, Apple is hoping to change that.

Quad-Core iMacs in January

Digitimes is reporting that Apple is planning to move all of its all-in-one iMac machines to be powered by quad-core Intel chips. This would keep the iMacs extremely competitive within the market as they could increase power and keep costs relatively low.

Intel will launch the Core 2 Quad Q8200s (2.33GHz/4MB L2), Core 2 Quad Q9400s (2.66GHz/6MB L2) and Core 2 Quad Q9550s (2.83GHz/12MB L2) with prices at US$245, US$320 and US$369, respectively in thousand-unit tray quantities. These CPUs will have the same specifications as standard CPUs with the same model number, but will see their TDP drop from 95W to 65W.

These chips would significantly increase the speed and improve performance while at the same time cutting costs for Apple. As Electronista explains, “The 2.33GHz, 2.66GHz and 2.83GHz chips cost $245, $320 and $369 in large batches, according to the report.”

Currently, Apple’s iMacs use a dual-core setup, which for an all-in-one machines makes sense. However, the iMac in general still lacks in terms of serious multi-tasking power and processing performance. A move to desktop class processors could make the machine appeal to a much broader range of users. Apple would need to restructure the way cooling works on the iMacs though. The Core 2 Duo chips that are used now produce low power and low heat, which the iMac’s casing depends on.

Judge Orders IBM to Pay $3 Million Papermaster Bond [Update]

Aviv — Fri, 14 Nov 2008 17:37:32 +0000

When IBM first filed a lawsuit against Mark Papermaster, attempting to prevent him from joining Apple, they only had to pay a $350 filing fee to pursue the case. Now, a judge is ordering IBM to put up a $3 Million bond to cover any wrongful damages or costs Papermaster may encounter.

In an attempt to assess the amount of damages that Papermaster may ensue should the injunction be seen as a mistake, U.S. District Judge, Kenneth Karas, has ordered IBM to put up an appropriate bond on Tuesday. Seeing as how the district courts are allowed “wide discretion” in assessing a proper amount, Karas stated:

“Here, based on a careful reading of the letters sent by the Parties to the Court, which are being filed under seal, the Court finds that a bond in the amount of $3,000,000 is appropriate to guarantee payment of the costs and damages that Defendant may incur…”

Fortune points out that following Karas’ order, Papermaster’s legal team had filed counterclaims to IBM’s suit, admitting only indisputable facts, even denying that Papermaster had ever worked for IBM in the first place. While IBM and Apple make claims that they are not even in competition, it has been stated that Papermaster was not hired to do work that would conflict with IBM. Even if that were the case, Papermaster’s lawyers insist that IBM’s noncompetition agreement is inordinately broad. Moreover, his legal counsel argues that the agreement is null and void in the state of Texas, where Papermaster has spent the past 17 years, as well as in California, the home of Apple’s headquarters. A status conference has been set for Tuesday, November 18 at 10:00 a.m. in the US District Court, Southern District of New York, White Plains.

The Papermaster Saga:
READ → – Apple Poaches Top IBM Chip Designer, IBM Sues Back
READ → – Mark Papermaster’s Bio Removed From Apple’s Website
READ → – Papermaster Ordered to Stop Working, Claims He Did Nothing Wrong
READ → – Tony Fadell, Senior VP of iPod Division, Leaves Apple
READ → – Apple and IBM Set to Clash Over Executive Poaching
READ → – Tony Fadell to Remain as Special Advisor to Steve Jobs
READ → – Apple Issues Press Release Announcing Papermaster’s Arrival

Update: Cnet’s Tom Krazit points us to some more information clarifying Papermaster’s counterclaim against IBM. As we briefly explained above, “Papermaster’s lawyers insist that IBM’s noncompetition agreement is inordinately broad.”

The “Business Enterprise” restriction is unreasonably broad in that it purports to restrict Mr. Papermaster from going to work for any company that engages in competition with his former business unit to any extent, even if Mr. Papermaster will not be working for the part of the company that does so. Likewise, the “significant competitor or major competitor” prong purports to restrict Mr. Papermaster from going to work for one of these companies even if the work that Mr. Papermaster will be doing is completely unrelated to the work he was doing at IBM. These provisions are not necessary to protect any legitimate interests of IBM.

The Noncompetition Agreement is also unreasonably broad in that it purports to impose an unreasonably lengthy time limitation. In the world of technology, any trade secrets that Mr. Papermaster possesses would lose their value prior to the expiration of a year. The purported geographic scope of the “Restricted Area” is similarly unreasonable. Mr. Papermaster has resided and worked in Austin, Texas for the past 17 years, yet the language of the Noncompetition Agreement purports to restrict him from working anywhere in the world based on the global scope of IBM’s business. Again, these restrictions are not necessary to protect any legitimate interests of IBM.

PDF source links via Fortune
• IBM’s complaint: [PDF]
• Papermaster’s declaration [PDF]
• Judge Karas’ order [PDF]
• Papermaster’s objections [PDF]