Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

___

Online:

CDC report: http://www.cdc.gov/nchs/

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Erdrich wins her first National Book Award

NEW YORK (AP) — The National Book Awards honored both longtime writers and new authors, from Louise Erdrich for "The Round House" to Katherine Boo for her debut work, "Beyond the Beautiful Forevers."

Erdrich, 58, has been a published and highly regarded author for nearly 30 years but had never won a National Book Award until being cited Wednesday for her story, the second of a planned trilogy, about an Ojibwe boy and his quest to avenge his mother's rape. A clearly delighted and surprised Erdrich, who's part Ojibwe, spoke in her tribal tongue and then switched to English as she dedicated her fiction award to "the grace and endurance of native people."

The works of two other winners also centered on young boys — Boo's for nonfiction, and William Alexander's fantasy "Goblin Secrets," for young people's literature. David Ferry won for poetry.

Boo's book, set in a Mumbai slum, is the story of a boy and his harsh and illuminating education in the consequences of crime or perceived crime. The author, a Pulitzer Prize-winning journalist currently on staff with The New Yorker, said she was grateful for the chance to live in a world she "didn't know" and for the chance to tell the stories of those otherwise ignored. She praised a fellow nominee and fellow Pulitzer-winning reporter, the late Anthony Shadid, for also believing in stories of those without fame or power.

Boo was chosen from one of the strongest lists of nonfiction books in memory, from the fourth volume of Robert Caro's Lyndon Johnson series to Shadid's memoir "House of Stone" and Anne Applebaum's "House of Stone." Finalists in fiction, which in recent years favored lesser known writers, included such established names as Dave Eggers and Junot Diaz. Publishers have been concerned that the National Book Awards have become too insular and are considering changes, including expanding the pool of judges beyond writers.

Winners, chosen by panels of their peers, each will receive $10,000.Judges looked through nearly 1,300 books.

Ferry is a year older than one of the night's honorary recipients, Elmore Leonard. Ferry, 88, won for "Bewilderment: New Poems and Translations," a showcase for his versatile style. He fought back tears as he confided that he thought there was a chance for winning because he "was so much older" than the other nominees. Attempting to find poetry in victory, he called the award a "pre-posthumous" honor.

Alexander quoted fellow fantasy writer Ursula K. Le Guin in highlighting the importance of stories for shaping kids' imaginations and making the world a larger place than the one they live in.

"We have to remember that," Alexander said.

The ceremony was hosted by commentator-performer Faith Salie and went smoothly even though Superstorm Sandy badly damaged the offices of the award's organizer, the National Book Foundation, whose staffers had to work with limited telephone and mail access.

Honorary prizes were given to Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

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FCC recommends cross-ownership waivers for Tribune Co.









The staff of the Federal Communications Commission has recommended that the agency grant Tribune Co. waivers of so-called media ownership rules, paving the way for the company to emerge from its long-running bankruptcy.

The waivers -- the last major hurdle in the four-year case -- would take effect Friday as long as none of the five commissioners raise serious objections, according to a person at the FCC who wasn't authorized to speak and therefore did not want to be identified.

No vote is required for the waivers to take effect.

The waivers would set the wheels in motion to emerge from bankruptcy, something that can happen as soon as new ownership, a group led by senior creditors Oaktree Capital Management, Angelo Gordon & Co and JPMorgan Chase & Co., can complete the necessary paperwork.

The FCC staff is recommending that the agency grant a permanent waiver to Tribune's ownership of the Chicago Tribune and WGN radio and television stations and that it give  one-year waivers for the Los Angeles Times ownership of KTLA-TV Channel 5 and for similar arrangements in three other markets.

The FCC also is circulating among commissioners a proposal for new media ownership rules that would ease restrictions on consolidations among newspapers and TV and ratio stations, according to FCC Chairman Julius Genachowski. That proposal is expected to come up for an agency vote at the next regular meeting.

Once the new rules are in effect, Tribune's new owners could seek permanent waivers in the Los Angeles, New York, Hartford, Conn., and South Florida markets.

Tribune Vice President Shaun Sheehan declined to comment.

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Public money, private business














A Tribune investigation has found that former U.S. House Speaker Dennis Hastert has used his taxpayer-funded office to conduct private business. Federal law allows former House speakers to maintain a government-financed office for up to five years, but they are not permitted to use the office for financial gain.
(Nuccio DiNuzzo, Chicago Tribune / November 14, 2012)





















































Former U.S. House Speaker J. Dennis Hastert has conducted private business ventures through a little-known government office that has cost taxpayers about $1.8 million, a Tribune investigation has found.

Former House speakers are allowed to maintain a government-financed office for up to five years to wrap up matters relating to their tenure. They are not permitted to use the office for financial gain.

But the Tribune found that a secretary in the ex-speaker’s government office used email to coordinate some of his private business meetings and travel, and conducted research on one proposed venture. A suburban Chicago businessman who was involved in the business ventures with Hastert said he met with Hastert at least three times in the government office to discuss the projects.





Hastert, an Illinois Republican, said he did not misuse the office. “I didn’t work on any private business out of there,” he said.

Court records, interviews and dozens of emails link the Office of the Former Speaker to J. David John, a Burr Ridge businessman who made six of the emails public in a lawsuit in DuPage County. John alleges in his suit that Wheaton College officials and others ruined his business relationship with Hastert, who is not a defendant in the suit.

 Read the full story as a digitalPLUS member: Hastert used government office for private business






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Exclusive: AMD hires bank to explore options - sources

NEW YORK/SAN FRANCISCO (Reuters) - Advanced Micro Devices has hired JPMorgan Chase & Co to explore options, which could include a sale, as the chipmaker struggles to find a role in an industry increasingly focused on mobile devices and away from traditional PCs, according to three sources familiar with the situation.


Sources told Reuters on Tuesday that an outright sale of the company is not the main option, and other choices could include a sale of its portfolio of patents.


The company's stock surged 18 percent on the news before ending up 5 percent at $2.09 on the New York Stock Exchange. The shares slipped further to $2.07 in extended trade after AMD said it was "not actively pursuing a sale of the company or significant assets at this time."


"AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly-differentiated technology assets is the right approach to enhance shareholder value," spokesman Drew Prairie said in an email to Reuters.


When asked why AMD had hired JPMorgan, Prairie declined to confirm the engagement, saying the company does not comment on its relationship with investment banks.


A JPMorgan spokeswoman declined to comment.


One of Silicon Valley's oldest chipmakers, AMD is laying off engineers and some analysts are concerned it may not find new markets for its chips in time to reverse a declining cash reserve.


AMD's shares have fallen more than 60 percent this year, giving it a market value of about $1.4 billion. It also has long-term debt and capital lease obligations of about $2 billion.


Since the 1980s, AMD has competed with much larger Intel and at times has made inroads with its PC and server chips. But setbacks at AMD limited those gains and AMD now faces new competition from companies designing low-cost and power-efficient chips based on ARM Holdings' technology.


Like Intel, Sunnyvale, California-based AMD was caught flat-footed in recent years with the emergence and fast growth of mobile devices.


But while Intel has deep pockets to fund research on new products to catch up, AMD faces declining cash flows and a more modest balance sheet.


EMULATE APPLE


Some investors believe part or all of AMD could be bought by a technology company that might want to emulate Apple Inc's tight control of software and components, a strategy credited in part for the success of the iPad and iPhone.


One source described AMD as a "legacy company" and said it might prove difficult to sell because of its dependence on the PC industry and lack of strong mobile offerings.


Another source said AMD's game console chip and embedded chips businesses were growing and attractive.


Microsoft Corp, Google Inc, Samsung Electronics, Intel Corp and even Facebook Inc have been suggested by Wall Street analysts as potential suitors that could benefit from some of AMD's chip business, including its graphics division, PC processors and server chips.


Others say AMD's most valuable asset may be its deep bench of engineers or its patents.


Goldman Sachs analyst James Covello estimated in a recent note to clients the chances of AMD's PC processor business being sold are between 15 percent and 30 percent.


Rather than selling AMD, bankers could help the chipmaker strengthen its finances in order to acquire technology it believes it needs to tackle new markets, said Williams Financial analyst Cody Acree.


"Right now they don't have the currency on their balance sheet or their share price to make an acquisition (of another company) viable," Acree said.


UNDERESTIMATED CHANGE


Rory Read took over as AMD's CEO in 2011 promising to fix long-standing execution problems that have plagued the chipmaker. But AMD has continued to lose money as well as market share to Intel and graphic chip rival Nvidia.


AMD said last month it would slash 15 percent of its workforce, while devoting more resources to areas outside of its traditional PC business, including communications, industrial and gaming applications.


Last week, AMD said it added a second board member from its leading shareholder, Mubadala Development Co, which owns 15 percent of the chipmaker.


In October, Read told analysts on a conference call he had underestimated the speed of change in the PC industry and said AMD would move quickly to focus on selling chips for communications, industrial and gaming applications.


AMD recently announced it has licensed technology from ARM and will use it to build low-power chips for servers. But those products aren't expected to launch until 2014 and AMD is one of several companies vying for a microserver market that will be small compared to traditional servers that power most data centers.


With the company burning through cash, analysts have recently become concerned about future liquidity and say AMD needs to turn its business around sooner than later.


AMD's cash declined $279 million in the third quarter to $1.48 billion. AMD said it was reducing its "optimal" cash target to $1.1 billion from $1.5 billion due to the business' now smaller size.


(Reporting by Nadia Damouni and Noel Randewich; Editing by Paritosh Bansal, Gary Hill and Bernard Orr)


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Curry scores 23, Duke holds off Kentucky 75-68

ATLANTA (AP) — Seth Curry did some schooling on Kentucky's latest group of heralded freshmen, showing that experience does matter — especially in November.

The senior guard scored 23 points and No. 9 Duke held off a furious comeback by the third-ranked Wildcats, beating the defending national champions 75-68 Tuesday night in the first matchup between the storied programs since 2001.

Duke coach Mike Krzyzewski likes the mix of his team, while Kentucky's John Calipari conceded that his youngsters still have a lot of growing up to do.

"Veterans and talent," Krzyzewski said. "Now, I wouldn't mind having some of their guys. And I'm sure they would like to have some of our guys."

Duke (2-0) appeared to be in control, even with Mason Plumlee on the bench in foul trouble. The Blue Devils ripped off a 13-3 run, capped by Rasheed Sulaimon's 3-pointer that made it 58-44 with 9 1/2 minutes remaining.

But Kentucky (1-1) wasn't done, rallying like the defending champ even though this is essentially a whole new team in Calipari's one-and-done system. The Wildcats outscored Duke 17-6 over the next six minutes and actually had a chance to tie it.

Julius Mays missed a 3-pointer with the Blue Devils clinging to a 64-61 lead.

Curry made sure youthful Kentucky didn't get any closer. He blew past Archie Goodwin on a drive — using a pump fake to get by the freshman guard — that essentially clinched the win.

The Blue Devils are expecting nothing less out their leaders.

"That's what we worked on during the preseason — taking control of the team, having it be our team," Curry said. "I had it going, so they came to me."

Alex Poythress led Kentucky with 20 points, while Nerlens Noel and Goodwin added 16 apiece. All are freshmen, showing this team has plenty of room to grow before tournament time.

Their ultimate goal is a return trip to "Cat-Lanta" — and two more games in the Georgia Dome, site of this season's Final Four. In the first game of a doubleheader featuring four of the country's best programs, No. 21 Michigan State knocked off No. 7 Kansas 67-64.

"This was a big game for these guys," Calipari said. "They were in Vegas playing AAU ball four months ago."

Even though Kentucky opened the season with a tight victory over Maryland, Calipari wasn't happy with his team's effort — especially on the boards. They were outrebounded 54-38 by the Terrapins, including 28 at the offensive end.

That was simply unacceptable given Kentucky's vaunted frontcourt featuring the 6-foot-10 Noel and 7-footer Willie Cauley-Stein.

Rebounding wasn't as much of an issue this time — Duke finished with a 31-30 edge — but the experienced Blue Devils showed a bit more poise down the stretch.

"Nerlens played way more aggressive than he did against Maryland," Calipari said. "We're getting better. We were better than we were against Maryland. This team just had some seniors. But we had a chance. When we got it to three I said, 'We're going to win this.' They just made their free throws."

After Duke let Kentucky back in the game by continuing to put up errant jumpers, Curry finally changed things up. He gave a slight fake and took off for the hoop with just over 2 minutes remaining, forcing Goodwin to grab him by the arm. The senior knocked down both ends of the one-and-one, pushing Duke to a 66-61 lead with 2:04 remaining.

Poythress gave the Wildcats a semblance of hope, putting back a missed shot, but Curry blew by Goodwin again for a layin that made it 68-63 with 1:13 left and essentially sealed it. Calipari called a timeout and screamed at Goodwin as the freshman walked toward the bench.

In the final minute, Curry added two more free throws to help finish off the Wildcats.

Plumlee fouled out near the end, but not before scoring 18 points in 29 minutes. Ryan Kelly and Sulaimon had 10 points apiece. Both Curry and Sulaimon hit three shots beyond the arc, as the Blue Devils finished 8 of 18 from 3-point range.

Kentucky still must address the same point guard questions it had before the opener. Sophomore transfer Ryan Harrow has been suffering from flu-like symptom and didn't even make the trip to Atlanta, ruining a chance to impress the home folks. He played his high school ball in suburban Marietta.

Mays, a graduate student, started in place of Harrow but had only seven points and three assists.

Calipari said he shouldn't have played Harrow against Maryland. As it was, the guard was only able to go 10 minutes. Now, while the team awaits the results of blood tests, the coach vowed not to play him again until he's fully recovered.

"He said he could go, but he wasn't ready," Calipari said. "We need to get him healthy."

Duke led 33-31 at halftime, but began to pull away early in the second half. Back-to-back 3-pointers by Sulaimon and Quinn Cook snapped a 37-all tie, and two more treys by Sulaimon gave Duke its biggest lead.

But Kentucky began to clamp down defensively, and the Blue Devils went cold.

Until experience took over.

___

Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963

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Rolling Stones add fifth date to anniversary tour
















LONDON (Reuters) – The Rolling Stones have added a fifth date to their 50th anniversary tour later this year, the band announced on its website.


In between two shows at London‘s O2 Arena starting on November 25 and two more at the Prudential Center in Newark, NJ opening on December 13 the veteran quartet will play the Barclays Center in Brooklyn, NY on December 8.













Tickets for the fifth concert go on sale on Monday, November 19. The first four gigs quickly sold out despite complaints from many fans over high ticket prices ranging between around 95 pounds ($ 150) and 950 pounds for a VIP seat in London.


On auction website eBay, a pair of ticket with a face value of 406 pounds is on offer for as much as 1,500 pounds.


“You might say, ‘The tickets are too expensive’,” singer Mick Jagger told Billboard magazine in a recent interview.


“Well, it’s a very expensive show to put on, just to do four shows, because normally you do a hundred shows and you’d have the same expenses.”


He added that he did not agree with the secondary ticket market and stressed that the Rolling Stones did not profit from tickets changing hands at inflated prices.


The concerts celebrating 50 years of the band behind hits like “(I Can’t Get No) Satisfaction” and “Honky Tonk Women” are part of a series of events marking the milestone including a new documentary, a photograph book and a greatest hits album.


The music press has been rife with speculation that the Stones could launch a full world tour next year including a set at the Glastonbury music festival.


(Reporting by Mike Collett-White, editing by Paul Casciato)


Music News Headlines – Yahoo! News



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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Guilty plea expected by reputed Conn. mobster

HARTFORD, Conn. (AP) — A 76-year-old reputed Connecticut mobster is expected to plead guilty in a weapons and prescription drugs case that has revealed the FBI's belief that he has information about the largest art heist in history.

Robert Gentile (JEN'-tile), of Manchester, has a change-of-plea hearing scheduled for Wednesday in Hartford federal court.

Federal prosecutors and Gentile's lawyer declined to comment on the hearing.

During a hearing in the case last March, a federal prosecutor disclosed that the FBI believes Gentile had some involvement with stolen property related to a 1990 heist at Boston's Isabella Stewart Gardner Museum. Thieves made off with masterworks by Rembrandt, Vermeer, Degas and Manet worth more than a half-billion dollars.

Gentile hasn't been charged in the art heist and his lawyer says his client knows nothing about it.

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Microsoft executive exits at a shaky time









Turns out Microsoft Corp.'s radical overhaul of its Windows operating system last month wasn't the only big change in store for the company.

The abrupt departure of Steven Sinofsky, president of Windows and Windows Live, is being called poor timing for the tech behemoth. It's also seen as a sign that longtime Chief Executive Steve Ballmer has no plans to step down anytime soon.

Sinofsky's exit, just weeks after the company rolled out the Windows 8 operating system, "doesn't necessarily reflect well on the company," said Kirk Materne, managing director at Evercore Partners.








"I think if you're Steve, having this happen right after creates a level of distraction that you don't want in the first place," he said. "It's never great when you've had this much turnover at the senior level of a company that is really trying to gain its footing in markets like tablet and mobile."

Shares of Microsoft slid 90 cents, or 3.2%, to $27.09 on Tuesday. Its stock has languished in the last decade — virtually unchanged — while shares of rival Apple Inc. have climbed more than 6,700%.

Microsoft is under pressure to impress consumers and investors with its latest offerings, which include Windows 8 and its new Surface device, a hybrid tablet-laptop that launched last month.

But both products have been met with lackluster interest. Windows 8 debuted to low investor expectations, and reviews for the revamped operating system have been mixed, with some users saying it's at times confusing to use.

The Surface, meanwhile, was buzz-worthy when it was first unveiled, but analysts seem unconvinced that it will make a dent in a market currently dominated by Apple's iPad. Although the hardware is sleek, the Surface lacks applications compared with the iPad, and its highly touted snap-on keyboard that doubles as a cover is difficult to accurately type on, reviewers have said.

The Windows 8 launch was said to be the biggest revamp of the operating system in nearly two decades. The latest update includes a new interface called the Start screen that was designed for tablets and touch-screen computers and features moving tiles similar to those on Windows Phone devices. Microsoft wants the new Start screen interface to be the future of Windows.

"The general conclusion of Win 8 is on the surface, it's a solid first start," Materne said. "It's not mind-blowing, it's not going to immediately recapture market share, but it gets them back in the ballgame to a certain degree."

Sinofsky, a 23-year Microsoft veteran, was in charge of the Windows 8 and Surface efforts at the Redmond, Wash., company. He was a polarizing figure in the office with a tough management style and was rumored to be in line to succeed Ballmer, who has been chief executive since 2000.

In an employee memo Monday, the day Microsoft announced his departure, Sinofsky said he had decided to leave to seek "new opportunities."

"With the general availability of Windows 8/RT and Surface, I have decided it is time for me to take a step back from my responsibilities at Microsoft," he said. "I've always advocated using the break between product cycles as an opportunity to reflect and to look ahead, and that applies to me too."

Now that Sinofsky has left, analysts — some of whom speculated there had been a rift between Sinofsky and Ballmer — say they expect a new direction for the Windows division.

"Sinofsky was a highly talented operator who hit product release dates, got delivery in Windows to be more reliable, and was pivotal to successful Office and Win 7 releases," Morgan Stanley analyst Adam Holt said in a note to investors. "While he is a loss for Microsoft, Windows has entered a different phase where cultivation of developers, collaboration between product groups, integration with the mobile operating system and a focus on applications become more important."

Sinofsky will be replaced by Julie Larson-Green, who has been with the company since 1993 and oversaw program management, user interface design and research for Windows 7 and 8. She will lead all Windows software and hardware engineering.

Tami Reller, Windows chief financial officer and chief marketing officer, also will assume responsibility for the business of Windows.

There could be a bit of a learning curve in the meantime, said equity analyst Angelo Zino of S&P Capital IQ.

"We are surprised by the announcement, given Sinofsky's recent success as well as a belief by many that he could eventually have been the successor to CEO Steve Ballmer," he said. "While we are confident in the abilities of both individuals, we see the change increasing product development risk to future Windows releases."

andrea.chang@latimes.com





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