It runs using gas-filled tubes, mechanical relays, and paper tape. It’s a giant, and it’s slow. But it runs, dammit.
On Tuesday, volunteers at Britain’s National Museum of Computing rebooted the Harwell Dekatron — a 2.5-metric-ton monster from the early 1950s — making it the oldest working digital computer in existence.
It took about half an hour to warm the machine up. Then the volunteers — who’d spent the past two-and-a-half years rebuilding the machine — fed in a program via paper tape. Gas-powered tubes lit up. There was some clicking and clunking. Lights flashed. And then the 61-year-old printer typed out the answer to a simple multiplication problem — its first job since the 1970s.
Two of the Dekatron’s original designers and a few of its former operators were on-hand yesterday at the National Museum of Computing’s Bletchley Park home to catch the reboot. “The machine worked perfectly,” says Kevin Murrell, who’s led the restoration effort.
The machine was built in 1951, and it served for six years as a number-cruncher for the U.K.’s main atomic research facility at Harwell. “This was used in the very early days of modeling atomic power plants,” Murrell says. It could do complex equations flawlessly, at about the speed of two mathematicians armed with mechanical calculators.
In 1957, the giant computer was shipped of to the nearby Wolverhampton and Staffordshire Technical College, where it served as a comp-sci teaching tool for a couple of more decades. That’s where it picked up the name the WITCH (Wolverhampton Instrument for Teaching Computing from Harwell). Then, in 1973, the Guinness Book of World Records proclaimed it the world’s most durable computer. It was eventually mothballed in a museum.
About three years ago, Kevin Murrell was looking through photos of computer components the National Museum of Computing had in storage. Something popped out. “In the corner of one picture was a little control panel,” he remembers. “I looked at this an thought I know this control panel. That’s the machine I remembered from all those years ago.”
Amazingly, about 95 percent of the machine was still in the collection. So after a few years of cleaning the machine’s 4,000 connectors, and 828 Dekatron tubes, rewiring and repairing power supplies, the historic computer was good to go.
It uses gas-filled Dekatron counting tubes instead of the transistors you’d find in modern computers. As the six-person restoration team discovered, these tubes held up amazingly well after more than 60 years.
The clear tubes store values in one of 10 cathodes, grouped in a circle around a central node, so you can actually see what’s in memory. This combined with the Dekatron’s plodding pace, makes it a remarkable computer teaching tool, Murrell says.
“You can look at the memory location and say, ‘Yes, that contains the number three.’”
LOS ANGELES (Reuters) – Mexican filmmaker Guillermo del Toro is known for putting a dark twist on super heroes and children’s fantasy, but in “Rise of the Guardians” the producer brings together holiday heroes for a festive adventure.
“Rise of the Guardians,” which will be in theaters on Friday, is based on award-winning author William Joyce’s “The Guardians of Childhood” books. In the film, traditional characters such as Santa Claus, Easter Bunny, Tooth Fairy, Sandman and Jack Frost join forces to save earth’s children from the evil Pitch Black and his band of Nightmares.
In the movie that stars Chris Pine, Alec Baldwin, Jude Law, Isla Fisher and Hugh Jackman, del Toro, 48, steps back into the executive producer role after directing dark fantasy “Pan’s Labyrinth” and the “Hellboy” superhero franchise.
He spoke to Reuters about putting his own stamp on beloved holiday heroes, and why children’s films are important to him.
Q: In “Rise of the Guardians,” Santa has tattoos, the Easter Bunny is Australian and the Tooth Fairy is half-human, half bird. Not the way most of us grew up imagining them, is it?
A: “We didn’t want the characters to have the affections that are given to them in certain cultures. We didn’t want to go with the safe Easter Bunny that is now a marketing tool … We wanted them to represent the world and to geographically make sense. Where would a burrower live, the Outback? The original incarnation of Santa is almost that of a hunter and wild man. It comes from the Nordic and Eastern European notions so we thought it would be great to make him Slavic.”
Q: The film is about addressing fear, which is always a challenging lesson for parents to teach their children. Why make this the central theme?
A: “In order to address fear, parents always end up tiptoeing around the subject. Shielding our kids is not the way to go, but you also don’t want to send them out unprepared without a healthy sense of self. I thought the movie was a great analogy to many things. It’s a great metaphor for kids to interpret the world.”
Q: What attracts you to the children’s genre?
A: “Some of my favorite authors in literature are guys that are great portrayers of childhood, but not necessarily childish – Mark Twain, Charles Dickens, Roald Dahl. And my movies like ‘Hellboy‘ and ‘Hellboy 2′ are about misfits coming together. Same with my Spanish movie ‘The Devil’s Backbone.’ So this movie is thematically very much within what I like to do.
“I think that for good or for bad, we spend the rest of our lives dealing with our first 13 years of life, trying to remedy or be lifted by whatever tools we were given when we were kids. Those first years are when we, as adults, sculpt the character of our kids … In reality, life puts kids in our lives for us to learn from them. There is no braver soul in the world than a kid.”
Q: Which “Guardian” do you identify with the most?
A: “I identify with North (Santa Claus). I have the greatest blessing in my life, which is the capacity to remain a child in the way I like to see the world. Like every artist, I have turmoil and I suffer. But ultimately I am able to find magic in the world. When North declares those principles, when he says ‘I feel it in my belly,’ it’s very much something I identify completely with.”
Q: Can we expect to see more of this band of heroes in future films?
A: “Obviously the possibility of telling another tale is completely dependent on the studio. But Bill Joyce has written many books on the characters and we are on board to create more and more adventures for them. We’ve been talking about some storylines. I am eager to tell everyone the story of North.”
Q: You recently finished shooting sci-fi adventure “Pacific Rim,” due in theaters in 2013, which is your first directing venture since 2008′s “Hellboy II: The Golden Army.” Why the break?
A: “I went to New Zealand to direct ‘The Hobbit’ and I was there for two years. I co-wrote the script, and at the end of the process there was a moment of decision where I really wanted to pursue something else and not keep waiting (‘The Hobbit’ production was delayed due to movie studio MGM’s financial troubles).
“Then I spent over a year trying to get a movie called ‘Mountains of Madness’ off the ground. That didn’t happen. Next it took another two years to get ‘Pacific Rim’ to the screen. But in the meantime, I co-wrote three novels, produced three movies and wrote a TV series. It’s been a very busy five years.”
(Reporting by Zorianna Kit, editing by Piya Sinha-Roy and Jeffrey Benkoe)
New infections with H.I.V. have dropped by half in the past decade in 25 poor and middle-income countries, many of them in Africa, the continent hardest hit by AIDS, the United Nations said Tuesday.
The greatest success has been in preventing mothers from infecting their babies, but focusing testing and treatment on high-risk groups like gay men, prostitutes and drug addicts has also paid dividends, said Michel Sidibé, the executive director of the agency U.N.AIDS.
“We are moving from despair to hope,” he said.
Despite the good news from those countries, the agency’s annual report showed that globally, progress is steady but slow. By the usual measure of whether the fight against AIDS is being won, it is still being lost: 2.5 million people became infected last year, while only 1.4 million received lifesaving treatment for the first time.
“There has been tremendous progress over the last decade, but we’re still not at the tipping point,” said Mitchell Warren, the executive director of AVAC, an advocacy group for AIDS prevention. “And the big issue, sadly, is money.”
Some regions, like Southern Africa and the Caribbean, are doing particularly well, while others, like Eastern Europe, Central Asia and the Middle East, are not. Globally, new infections are down 22 percent from 2001, when there were 3.2 million. Among newborns, they fell 40 percent, to 330,000 from 550,000.
The two most important financial forces in the fight, the multinational Global Fund for AIDS, Tuberculosis and Malaria and the domestic President’s Emergency Plan for AIDS Relief, were both created in the early 2000s and last year provided most of the $16.8 billion spent on the disease. But the need will soon be $24 billion a year, the groups said.
“Where is that money going to come from?” Mr. Warren asked.
The number of people living with H.I.V. rose to a new high of 34 million in 2011, while the number of deaths from AIDS was 1.7 million, down from a peak of 2.3 million in 2005. As more people get life-sustaining antiretroviral treatment, the number of people living with H.I.V. grows.
Globally, the number of people on antiretroviral drugs reached 8 million, up from 6.6 million in 2010. However, an additional 7 million are sick enough to need them. The situation is worse for children; 72 percent of those needing pediatric antiretrovirals do not get them.
New infections fell most drastically since 2001 in Southern Africa — by 71 percent in Botswana, 58 percent in Zambia and 41 percent in South Africa, which has the world’s biggest epidemic.
But countries with drops greater than 50 percent were as geographically diverse as Barbados, Cambodia, the Dominican Republic, Ethiopia, India and Papua New Guinea.
The most important factor, Mr. Sidibé said, was not nationwide billboard campaigns to get people to use condoms or abstain from sex. Nor was it male circumcision, a practice becoming more common in Africa.
Rather, it was focusing treatment on high-risk groups. While saving babies is always politically popular, saving gay men, drug addicts and prostitutes is not, so presidents and religious leaders often had to be persuaded to help them. Much of Mr. Sidibé’s nearly four years in his post has been spent doing just that.
Many leaders are now taking “a more targeted, pragmatic approach,” he said, and are “not blocking people from services because of their status.”
Fast-growing epidemics are often found in countries that criminalize behavior. For example, homosexuality is illegal in many Muslim countries in the Middle East and North Africa, so gay and bisexual men, who get many of the new infections, cannot admit being at risk. The epidemics in Eastern Europe and Central Asia are driven by heroin, and in those countries, methadone treatment is sometimes illegal.
Getting people on antiretroviral drugs makes them 96 percent less likely to infect others, studies have found, so treating growing numbers of people with AIDS has also helped prevent new infections.
Ethiopia’s recruitment of 35,000 community health workers, who teach young people how to protect themselves, has also aided in prevention.
Mr. Sidibé acknowledged that persuading rich countries to keep donating money was a struggle. The Global Fund is just now emerging from a year of turbulence with a new executive director, and the American program has come under budget pressures. Also, he noted, many countries like South Africa and China are relying less on donors and are paying their own costs. The number of people on treatment in China jumped 50 percent in a single year.
Mr. Warren’s organization said in a report on Tuesday that the arsenal of prevention methods had expanded greatly since the days when the choice was abstain from sex, be faithful or use condoms. Male circumcision, which cuts infection risk by about 60 percent, a daily prophylactic pill for the uninfected and vaginal microbicides for women are in use or on the horizon, and countries need to use the ones suited to their epidemics, the report concluded.
WASHINGTON -- Federal prosecutors on Tuesday charged a former hedge fund portfolio manager with securities fraud in connection with what they said was the most lucrative insider-trading case ever prosecuted.
In complaints filed in New York, authorities said investment advisors and hedge funds made more than $276 million in illegal profits or avoided losses by trading before the announcement in 2008 of negative results from clinical trials for an Alzheimer's disease drug being developed by Elan Corp. and Wyeth.
Prosecutors charged Mathew Martoma, a former portfolio manager at CR Intrinsic, an unregistered investment adviser, with securities fraud for allegedly illegally using information about the clinical trial results that he obtained from a neurologist at a hospital involved in the testing.
The criminal complaint did not name the neurologist, which it said was a cooperating witness in the case.
The Securities and Exchange Commission filed a a related civil suit Tuesday against Martoma, CR Intrinsic and Dr. Sidney Gilman, a neurology professor at the University of Michigan Medical School. The SEC suit said Gilman was chairman of the safety monitoring committee overseeing the clinical trials of the Alzheimer's drug.
Martoma met Gilman some time between 2006 and 2008 through paid consultations, the SEC complaint says. "During these consultations, Gilman provided Martoma with material, nonpublic information about the ongoing trial," the SEC complaint said.
In mid-July 2008, "Gilman provided Martoma with the actual, detailed results of the clinical trial" before an official announcement on July 29, 2008, the SEC said.
The FBI, SEC and U.S. attorney's office in New York scheduled a 12:30 p.m. EST news conference to discuss the case.
"The charges unsealed today describe cheating coming and going – specifically, insider trading first on the long side, and then on the short side, on a scale that has no historical precedent," said Preet Bharara, U.S. attorney for Manhattan. "As alleged, by cultivating and corrupting a doctor with access to secret drug data, Mathew Martoma and his hedge fund benefited from what might be the most lucrative inside tip of all time."
Follow Jim Puzzanghera on Twitter and Google+.
Also:
Senate moves insider trading bill to Obama's desk.
Baseball star Eddie Murray settles insider-trading investigation.
Former Goldman Sachs director Rajat Gupta guilty of insider trading.
Electromagnetic pulse grenades are a favorite of sci-fi storytellers and videogame designers, a la Halo and Call of Duty. The Army evidently doesn’t want to be left out: It’s seeking a real-life version that can blast electromagnetic signals and fry insurgent bombs.
To be specific, the Army wants “High Power Microwave (HPM) grenades” to “generate an electromagnetic pulse that could be used to defeat the electronics used to activate [homemade bombs] or that could be used to attack blasting caps,” according to its latest round of research contracts with small businesses. In theory, the electrical components on improvised explosive devices, like radio transmitters, could be overwhelmed by surging electromagnetic radiation emitted by such a weapon.
If the Army can actually develop this kind of Halo weapon, it’ll take a step toward making each of its soldiers a kind of one-man bomb squad.
While the improvised bomb is the primary weapon used against U.S. troops fighting overseas, not every soldier or marine can destroy a bomb like he or she can shoot an insurgent. To defuse bombs, troops rely on explosive ordnance demolition specialists, bomb-disposing robots and vehicle-mounted jammers. The Pentagon has also desperately struggled to stay a step ahead of the bombs’ technical adaptations. But if the Army has working EMP grenades, any soldier could conceivably lob one into a room, around a corner or into a ditch to fry an awaiting booby-trap’s circuits. As the Army puts it, it could mean “defeating IEDs by the individual soldier, while minimizing the collateral damage to humans.” Easier said than done.
For instance: An EMP grenade has to be small and lightweight enough to carry. The Army is requiring companies participating in the project to design their prototypes to fit the size of “hand or robot delivered munitions, 40 mm grenades, Rocket Propelled Grenades (RPGs), and Stinger, Hydra, and Javelin missiles.” The next step is figuring out a working design itself.
The first thing to know is that an EMP grenade could be either explosive or non-explosive, with trade-offs for each. According to the 2011 textbook Explosive Pulse Power by Army engineer Larry Altgilbers, who is overseeing the project, a non-explosive device could use “pulse compression,” or blasting brief but fierce electrical pulses while compressing the electrical current and voltage, thereby making the pulses stronger. As the device continues to blast out signals, the pulses then gradually decrease in duration. For a bomb circuit without protection diodes, such a burst of energy could theoretically fry its circuits or cause it to detonate.
Unfortunately, non-explosive systems “tend to be massive, large in size and fairly expensive,” Altglibers wrote. But explosive systems are smaller, lighter and can generate a lot more electrical power. The Army solicitation refers to potentially using “energy stored in ferromagnetic, ferroelectric or superconducting materials.” Possibly, these various magnets and superconductors could trap an electrical field inside a grenade, and when exploding, the grenade could compress the field. That would cause rapid changes in the field’s structure, boosting its power and thus generating — and releasing — tremendous amounts of electromagnetic energy.
A downside to that, though, is superconducting materials have to stay cool. It’s also likely to be a one-shot weapon as explosive pulse devices “generally destroy themselves and, quite usually, the load they are driving,” according to Altgilbers. But if it’s a grenade, then that might be no loss.
Less certain is how such a device would be used neuter a bomb detonated with minimal electrical parts, like the Taliban bombs that detonate when someone compresses a wooden pressure plate; whether it would inadvertently fry U.S. troops’ own electronic circuits; or how difficult (or expensive) it’ll be to develop an EMP grenade. One Israeli company has developed a much more conventional IED-jamming “grenade,” but it uses tiny antennas to scram bomb signals instead of exploding out EMP waves. Perhaps if all else fails, the Army could consider it. If not, it might play another round of Halo in order to brainstorm.
(Reuters) – The “Twilight” vampire saga‘s final chapter debuted with a massive $ 341 million in global movie ticket sales as devoted fans bid farewell to blood-sucking spouses Bella and Edward and one of Hollywood‘s biggest franchises.
“The Twilight Saga: Breaking Dawn – Part 2″ earned an estimated $ 141 million in the United States and Canada over the weekend, falling slightly short of a record for the supernatural romance series about a human-vampire-werewolf love triangle.
The total, which includes sales from late night Thursday through Sunday, ranked as the eight biggest domestic film debut of all time. Late-night Thursday screenings comprised $ 30.4 million of the $ 141 million total.
Fan fever for the fifth “Twilight” movie raged high around the world. “Breaking Dawn – Part 2″ rang up sales of $ 199.6 million from Thursday to Sunday at theaters in 61 countries for a worldwide total of $ 341 million, distributor Summit Entertainment said on Sunday.
The earlier “Twilight” films pulled in a combined $ 2.5 billion at global box offices over a four-year run. The success lifted tiny studio Summit Entertainment into Hollywood‘s big leagues and paved the way for its $ 412 million acquisition in January by Lions Gate Entertainment.
“New Moon” scored the biggest debut of the series, grossing $ 142.8 million over its first three days in 2009.
The movies based on a series of best-selling young adult books by Stephenie Meyer ignited a pop culture infatuation with blood-sucking vampires and werewolves. The films star Kristen Stewart as human-turned-vampire Bella Swan, Robert Pattinson as her vampire love Edward Cullen, and Taylor Lautner as werewolf Jacob Black, who competes for Bella’s affection.
Summit spent $ 120 million to produce “Breaking Dawn – Part 2,” which concludes the tale with newly turned vampire Bella and husband Edward in a high-stakes battle to protect their half-human, half-vampire daughter from an ancient vampire clan. The couple enlist the extended Cullen family in their fight.
Fans of the series, mostly teen girls nicknamed “Twi-hards,” embraced the final film, which includes a surprise twist that was not in the final book. Audiences polled by CinemaScore awarded the movie an “A” grade, with an “A+” from filmgoers under age 25, according to Summit. Critics were less supportive. Fifty-one percent of reviews collected on the Rotten Tomatoes website were positive.
Summit Entertainment‘s president of domestic distribution Richie Fay said though the vast majority of the audience was female, he expected more male viewers than for previous “Twilight” films.
“The male audience has increased a good bit, and the ratings among males are higher I think in part to the action in the film,” he said.
Author Meyer has not ruled out the possibility of more stories in the vampire-werewolf universe but said she has closed the chapter on the Cullens.
Hollywood is eager to fill the void after the success of “Twilight” highlighted the power of young adult stories on the big screen. Studios are bringing at least four new films based on popular young adult novels to theaters next year as well as the sequel to the newest teen movie sensation, “The Hunger Games.
The “Twilight” excitement eclipsed all other movies over the weekend. Last week’s winner, James Bond movie “Skyfall” finished in second place with $ 41.5 million at North American (U.S. and Canadian) theaters.
“Skyfall” is now the highest-grossing Bond movie to date with a global total of over $ 669 million, surpassing the $ 599 million taken in by “Casino Royale” in 2006.
“Skyfall” also propelled distributer Sony Pictures Entertainment to a record year, pushing its worldwide box office total over the $ 4 billion mark.
Historical drama “Lincoln” expanded from a limited opening a week ago and landed in third place with $ 21 million. The movie stars Daniel Day-Lewis as the 16th president near the end of his life as he battles to ban slavery and end the Civil War. The movie is directed by Steven Spielberg and has earned critical praise and awards-season buzz.
In fourth place, Walt Disney Co animated movie “Wreck-It Ralph,” about a videogame character who destroys everything in his path, pulled in $ 18.3 million. Denzel Washington drama “Flight” earned $ 8.6 million and the No. 5 spot.
Elsewhere, romantic comedy “Silver Linings Playbook” brought in $ 458,000 at 16 locations, or an average of $ 28,625 per theater. The film stars Bradley Cooper as a bipolar former teacher just released from a mental institution and Jennifer Lawrence as a young widow he encounters as he tries to put his life back together.
“Silver Linings” won over critics who say it may earn a spot in the Oscar race. The Weinstein Co, the private company that released the movie, will expand the film nationwide beginning on Wednesday, November 21.
Sony Corp’s movie studio distributed “Skyfall.” “Lincoln” was produced by Dreamworks and released by Walt Disney Co. “Flight” was distributed by Paramount Pictures, a unit of Viacom Inc.
(Reporting by Lisa Richwine; Editing by Jackie Frank)
Dr. Aaron Gardener, center, attended to a patient at an ad hoc medical unit in Long Beach, N.Y. Many people have coughs, rashes and other ailments.
Day and night, victims of Hurricane Sandy have been streaming into ad hoc emergency rooms and relief centers, like the MASH-type medical unit on an athletic field in Long Beach, and the warming tent in the Rockaways the size of a small high school gym.
They complain of rashes, asthma and coughing. They need tetanus shots because — house-proud and armed with survivalist instincts — they have been ripping out waterlogged boards and getting poked by rusty nails. Those with back pain from sifting through debris receive muscle relaxants; those with chest pain from overexertion are hooked up to cardiac monitors.
“I’ve been coughing,” said Gabriel McAuley, 46, who has been working 16-hour days gutting homes and hauling debris in the Rockaways since the storm hit. “I’ve never felt a cough like that before. It’s deeper down.”
It is impossible to say how many people have been sickened by what Hurricane Sandy left behind: mold from damp drywall; spills from oil tanks; sewage from floodwater and unflushable toilets; tons upon tons of debris and dust. But interviews with hurricane victims, recovery workers, health officials and medical experts over the last week reveal that some of the illnesses that they feared would occur, based on the toxic substances unleashed by the storm and the experience of other disasters, notably Hurricane Katrina, have begun to manifest themselves.
Emergency rooms and poison control centers have reported cases of carbon monoxide exposure — and in New Jersey, several deaths have been attributed to it — from the misuse of generators to provide power and stoves to provide heat.
In Livingston, N.J., the Burn Center at St. Barnabas Medical Center had 16 burn cases over about six days, three times as many as usual, from people trying to dispel the cold and darkness with boiling water, gasoline, candles and lighter fluid.
Raw sewage spilled into homes in Baldwin and East Rockaway, in Nassau County, when a sewage plant shut down because of the surge and the system could not handle the backup. Sewage also spilled from a huge plant in Newark. “We tried to limit our presence in the house because the stink was horrible,” said Jennifer Ayres, 34, of Baldwin, who has been staying temporarily in West Hempstead. She said that she felt ill for several days, that her son had a scratchy throat, and that her mother, who lives in the house, had difficulty breathing, all problems she attributed to the two days they spent inside their house cleaning up last week. “I had stomach problems. I felt itchy beyond itchy on my face.”
Coughing — locally known as the Rockaway cough — is a common symptom that health officials said could come from mold, or from the haze of dust and sand kicked up by the storm and demolitions. The air in the Rockaways is so full of particles that the traffic police wear masks — though many recovery workers do not, worrying people who recall the fallout of another disaster.
“It’s just like 9/11,” said Kathy Smilardi, sitting inside the skeleton of her gutted home in Broad Channel, wrapped in a white puffy jacket, her breath visible in the afternoon cold. “Everyone runs in to clean up, and they’re not wearing masks. Are we going to wait 20 years to figure out that people are dying?”
Health officials and experts say the risks are real, but are cautioning against hysteria. Some coughing could be due to cold, damp weather. Lasting health effects from mold, dust and other environmental hazards generally require long-term, continuous exposure, they said. And the short-term effects can be mitigated by taking precautions like wearing masks, gloves and boots and removing mold-infested wallboard. “The reality is that cleaning up both muck and sewage and spills and removing walls and reconstruction and dealing with debris all do in fact pose concerns,” Daniel Kass, New York City’s deputy commissioner for environmental health, said Friday. “Are they vast or uncontrollable? No. But they depend on people doing work correctly and taking basic precautions.”
The Katrina cough was found to be temporary, said Roy J. Rando, a professor at Tulane’s School of Public Health and Tropical Medicine. Felicia Rabito, an epidemiologist at the school, said that healthy children exposed to mold after Hurricane Katrina showed no lasting respiratory symptoms when they moved back to new or renovated homes.
Immediately after Hurricane Katrina, lead levels in New Orleans’s soil dropped after the top layers of dirt, where lead from paint and gasoline can accumulate, were washed away. But in the two years afterward, soil testing found extremely high lead levels, Dr. Rabito said, which she theorized came from renovating old homes. “That’s a cautionary tale,” she said. Lead in soil can be tracked into homes and pose a health hazard to children playing inside or outside.
Though at least one outbreak of norovirus, a contagious gastrointestinal virus, occurred in a Brooklyn high school that was used as a shelter, New York and New Jersey health officials said they had not seen any significant spike in respiratory or gastrointestinal diseases related to the storm.
In Broad Channel, most homes on Noel Road, where Ms. Smilardi lives, have outdoor oil tanks that were overturned by the storm. The innards of many homes, built when asbestos was used, lie spilled among major and minor roads.
Ominous red spots covered both sides of Paul Nowinski’s burly torso. After the storm, Mr. Nowinski, a musician, waded into the basement of his childhood home on Beach 146th Street in the Rockaways to try to salvage records, books and instruments. He was up to his chest in water, which he thinks might have been contaminated with sewage. He said that he did not know the cause of the red marks; and that he had been too busy “schlepping” to go to the doctor.
Hewlett-Packard said on Tuesday that it had taken an $8.8 billion accounting charge, after discovering “serious accounting improprieties” and “outright misrepresentations” at Autonomy, a British software maker that it bought for $10 billion last year.
It is a major setback for H.P., which has been struggling to turn around its operations and remake its business.
The charge essentially wiped out its profit. In the latest quarter, H.P. reported a net loss of $6.9 billion, compared with a $200 million profit in the period a year earlier. The company said the improprieties and misrepresentations took place just before the acquisition, and accounted for the majority of the charges in the quarter, more than $5 billion.
Shares in H.P. plummeted nearly 11 percent in early afternoon trading on Tuesday, to less than $12.
Hewlett-Packard bought Autonomy in the summer of 2011 in an attempt to bolster its presence in the enterprise software market and catch up with rivals like I.B.M. The takeover was the brainchild of Léo Apotheker, H.P.’s chief executive at the time, and was criticized within Silicon Valley as a hugely expensive blunder.
Mr. Apotheker resigned a month later. The management shake-up came about one year after Mark Hurd was forced to step down as the head of H.P. after questions were raised about his relationship with a female contract employee.
“I’m both stunned and disappointed to learn of Autonomy’s alleged accounting improprieties,” Mr. Apotheker said in a statement. “The developments are a shock to the many who believed in the company, myself included. ”
Since then, H.P. has tried to revive the company and to move past the controversies. Last year, Meg Whitman, a former head of eBay, took over as chief executive and began rethinking the product lineup and global marketing strategy.
But the efforts have been slow to take hold.
In the previous fiscal quarter, the company announced that it would take an $8 billion charge related to its 2008 acquisition of Electronic Data Systems, as well as added costs related to layoffs. Then Ms. Whitman told Wall Street analysts in October that revenue and profit would be significantly lower, adding that it would take several years to complete a turnaround.
“We have much more work to do,” Ms. Whitman said at the time.
Hewlett-Packard continues to face weakness in its core businesses. Revenue for the full fiscal year dropped 5 percent, to $120.4 billion, with the personal computer, printing, enterprise and service businesses all losing ground. Earnings dropped 23 percent, to $8 billion, over the same period.
“As we discussed during our securities analyst meeting last month, fiscal 2012 was the first year in a multiyear journey to turn H.P. around,” Ms. Whitman said in a statement. “We’re starting to see progress in key areas, such as new product releases and customer wins.”
The strategic troubles have weighed on the stock. Shares of H.P. have dropped to less than $12 from nearly $30 at their high this year.
The latest developments could present another setback for Ms. Whitman’s efforts.
When the company assessed Autonomy before the acquisitions, the financial results appeared to pass muster. Ms. Whitman said H.P.’s board at the time – which remains the same now, except for the addition of the activist investor Ralph V. Whitworth – relied on Deloitte’s auditing of Autonomy’s financial statements. As part of the due diligence process for the deal, H.P. also hired KPMG to audit Deloitte’s work.
Neither Deloitte nor KPMG caught the accounting discrepancies. Deloitte said in a statement that it could not comment on the matter, citing client confidentiality. “We will cooperate with the relevant authorities with any investigations into these allegations,” the accounting firm said.
Hewlett-Packard said it first began looking into potential accounting problems in the spring, after a senior Autonomy executive came forward. H.P. then hired a third-party forensic accounting firm, PricewaterhouseCoopers, to conduct an investigation covering Autonomy sales between the third quarter 2009 and the second quarter 2011, just before the acquisition.
The company said it discovered several accounting irregularities, which disguised Autonomy’s actual costs and the nature of the its products. Autonomy makes software that finds patterns, data that is used by companies and governments.
H.P. said that Autonomy, in some instances, sold hardware like servers, which has higher associated costs. But the company booked these as software sales. It had the effect of underplaying the company’s expenses and inflating the margins.
“They used low-end hardware sales, but put out that it was a pure software company,” said John Schultz, the general counsel of H.P. Computer hardware typically has a much smaller profit margin than software. “They put this into their growth calculation.”
An H.P. official, who spoke on background because of ongoing inquiries by regulators, said the hardware was sold at a 10 percent loss. The loss was disguised as a marketing expense, and the amount registered as a marketing expense appeared to increase over time, the official said.
H.P. also contends that Autonomy relied on value-added resellers, middlemen who sold software on behalf of the company. Those middlemen reported sales to customers that didn’t actually exist, according to H.P.
H.P. also claims that that Autonomy was taking licensing revenue upfront, before receiving the money. That improper assignment of sales inflated the company’s gross profit margins.pfront, before receiving the money. It had the effect, the company said, of significantly bolstering Autonomy’s gross margin.
Hewlett Packard turned over its findings to Securities and Exchange Commission in the United States and the Serious Fraud Office in Britain with the last week. In a conference call with analysts, Ms. Whitman said the company might consider legal actions against several parties.
The former management team of Autonomy, which includes the company’s founder Mike Lynch, rejected H.P. claims about the accounting issues.
“H.P. has made a series of allegations against some unspecified former members of Autonomy Corporation PLC’s senior management team. The former management team of Autonomy was shocked to see this statement today, and flatly rejects these allegations, which are false,” the group said in a statement. “It took 10 years to build Autonomy’s industry-leading technology and it is sad to see how it has been mismanaged since its acquisition by H.P.”
While Mr. Schultz would not detail H.P.’s future legal strategy, he said “we intend to be aggressive in recovering value for our shareholders.” In addition to Mr. Lynch, the company indicated this could include other individuals, including perhaps former senior executives of H.P. who missed the bad accounting. “We’re not limiting it to Autonomy,” Mr. Shulz said.
H.P. also underscored the importance of Autonomy to the broader strategy, emphasized the quality of the products. “This is a very healthy company with good products that exist,” said Mr. Shultz. “At its core, these are very good products.”
WASHINGTON -- The housing market recovery showed signs it is continuing to strengthen as sales of existing homes increased 2.1% in October from the previous month and a measure of home-builder confidence jumped in November to its highest level since 2006.
Sales of existing homes rose to a seasonally adjusted annual rate of 4.79 million last month, up from a downwardly revised 4.69 million rate in September, that National Assn. of Realtors reported Monday. Sales were up 10.9% in October from a year earlier.
Stronger demand helped push up the median home price nationwide to $178,600 in October, an increase of 11.1% from a year earlier, the group said. It was the eighth-straight month to show a year-over-year increase, the first time that's happened since 2005-2006.
Fewer houses on the market also helped drive price increases. There were 2.14 million existing homes for sale in October, down 1.4% from September. That translates to a 5.4-month supply at the current sales rate, the lowest level since February 2006.
Sales by distressed homeowners still accounted for a large chunk of activity. Foreclosures and short sales made up 24% of October's sales. That was the same level as in September, but down from 28% a year earlier.
Superstorm Sandy had some negative impact on sales, the group said.
The Northeast, which was hit hard by the storm, was the only region to show a decrease in sales in October from the previous month. Sales were down 1.7% there, while they increased 1.8% in the Midwest, 2.1% in the South and 4.4% in the West.
"Home sales continue to trend up and most October transactions were completed by the time the storm hit, but the growing demand with limited inventory is pressuring home prices in much of the country," said Lawrence Yun, chief economist at the Realtors group.
He expected more of an impact in the Northeast in coming months.
The improving housing market led to a boost in builder confidence, according to a measure released Monday.
The National Assn. of Home Builders/Wells Fargo Housing Market Index rose five points in November to 46 from the previous month. It was the seventh straight monthly increase, lifting the index to its highest level since May 2006, before the crash of the subprime housing market.
The index remained below 50, indicating that builders who view sales conditions as poor still outnumber those who view them as good. But the index is up sharply from its 19 reading a year ago, the home builders group said.
“Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country,” said Barry Rutenberg, a home builder from Gainesville, Fla., and chairman of the builders' group.
“In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates,” he said.
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After years of careful research, Microsoft has uncovered the data center’s long-lost cousin: the sewage treatment plant.
On Monday, the software giant announced that it will invest $5.5 million in a futuristic data center — called the Data Plant — that will be completely powered by methane harvested from the Dry Creek Water Reclamation Facility in Cheyenne, Wyoming. That’s right, it will convert poop into computing power.
The 200-kilowatt Data Plant will operate without help from the local power grid. To date, other outfits have set up their own biogas fuel plants to help power their data centers — and reduce their dependance on “dirtier” and less-efficient power sources — but in order to run these plants, they typically import methane that’s been processed elsewhere. The Cheyenne Data Plan “will be the first direct integration of a data center with a biogas source,” Microsoft said in a blog post.
“In a sense, wastewater treatment plants can be considered distant cousins of data centers,” wrote Sean James, a program manager with Microsoft’s Data Center Advanced Development Group. “They are mission-critical facilities with high-availability infrastructure built into the plant. These plants cannot go offline any more than a community can stop flushing.”
To build the Data Plant, Microsoft will drop down one of its modular data centers at the wastewater plant next to a 300-kilowatt fuel cell from a company called FuelCell Energy. The plant will filter out contaminants from the methane accumulated at the Dry Creek Facility and then use it to power the fuel cell. Any excess energy will be directed back to the treatment facility.
One of the tricks will be figuring out how to manage electricity so that the data center keeps running whenever there are spikes in computing demand. Because it will be off the grid, the Data Plant will need a “sophisticated power-management system to manage the load internally,” James said.
But according to Tom Furlong — vice president of data center site operations at Facebook — there may be advantages to operating entirely off the grid, as opposed to mixing your own power source with power from the grid. Facebook has mixed in a bit of solar power at its data center in Prineville, Oregon.
“We’ve learned some interesting lessons about trying to integrate onsite integration with a data center,” Furlong tells us. “It’s more completed in terms of how you deal with fail-over — what happens with back-up generators and other things. There’s a very complicated sequence there that in the normal world is quite simple.”
Many companies are working to power their data centers with alternative energy resources, and others have explored the benefits of sewage in data center design. Google cools its Douglas County, Georgia, data center with toilet water. But Microsoft believes this will be the first “zero carbon” data center, meaning it won’t be responsible for harmful carbon emissions unloaded onto Mother Nature, and it may be the first to actually power a data center with poop — though this has long been the dream at HP.
