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Intel, Qualcomm show changing face of computing (AP)

SAN FRANCISCO – The changing face of the computer industry was on display Wednesday as two companies representing the old guard and the new issued strong results for the latest quarter. Intel, a bedrock of the PC business, and Qualcomm, a vanguard in mobile computing, showed how companies at opposite ends of the computing spectrum are adapting to a market that's in intense upheaval. The U.S. and European PC markets have slumped: Fewer people are buying new PCs because of economic anxiety, market saturation and the rise of seductive new gadgets such as Apple's iPad. So Intel, which helped create the PC industry three decades ago, is counting on other areas for growth. The world's No. 1 maker of PC processors benefited from healthy demand from corporations and in emerging markets. It also rode the popularity of smartphones and tablet computers by selling the chips powering additional servers needed to handle the increased mobile traffic. CEO Paul Otellini said the results left him with "increasing confidence" for the second half of the year. Intel's smaller rival, Advanced Micro Devices Inc., reports results on Thursday. Intel said Wednesday that its net income rose 2 percent to $2.95 billion as revenue jumped 21 percent to $13 billion. Meanwhile, Qualcomm's net income increased 35 percent to $1.04 billion, and revenue rose 34 percent to $3.62 billion. The maker of wireless chips credited robust smartphone adoption. The company raised its guidance. Taken together, Intel's and Qualcomm's numbers demonstrate two things: • The rise of mobile gadgets and weakness in the consumer PC market in U.S. and Europe have profoundly transformed Intel's business. • Those changes are benefiting companies such as Qualcomm as they assume a more prominent role in the semiconductor world. But investors' dismissive reaction to the reports underlined that the companies are still subject to different sets of expectations, even as their businesses overlap to a greater degree. After the results came out late Wednesday, Intel Corp.'s stock fell 34 cents, or 1.5 percent, to $22.62, apparently because of fears that the PC market is so wobbly that Intel's forecasts might be too high. Qualcomm Inc.'s stock fell $1.50, or 2.6 percent, to $55.77 as some investors expected even stronger results. Left unspoken in both companies' reports was Apple Inc., whose introduction of the iPhone in 2007 and the iPad last year have single-handedly launched the computer industry in two new directions and reshuffled the established order. Apple on Tuesday reported blowout quarterly results, and its stock is headed toward an all-time high of $400. Apple has now sold nearly 29 million iPads and more than 128 million iPhones. In the latest quarter, it sold five times as many iPhones as it did Mac computers. Qualcomm is a key Apple supplier, and investors are hoping that the company can win more business — possibly by replacing iPhone chips now made by the wireless-chip division of Germany's Infineon Technologies AG, which Intel bought last year for $1.4 billion. Intel's second-quarter earnings translated to 54 cents per share, up from $2.89 billion, or 51 cents per share, a year ago. Excluding some expenses, Intel earned 59 cents per share, ahead of analyst expectations for 51 cents per share, according to FactSet. Revenue was ahead of analyst projections for $12.8 billion. Third-quarter guidance of $13.5 billion to $14.5 billion was also better than expected. Analysts had predicted $13.5 billion, at the low end of Intel's range. Its numbers don't necessarily mean that the PC business is in great shape. Consumer demand for PCs in mature markets such as the U.S. and Europe has been weak for the past year. Stacy Smith, Intel's chief financial officer, said in an interview it is expected to remain "relatively soft" for the remainder of 2011. Shipments into those markets are actually decreasing, according to market research that IDC and Gartner Inc. released last week. Instead, the higher numbers reflect three trends that Intel and its customers — the big PC makers such as Hewlett Packard Co. and Dell Inc. — plan to ride to stronger growth even as parts of their businesses contract. First, corporations are still upgrading their employees' PCs. They are believed to be only in the middle of a multi-year cycle. Emerging markets such as India and China are seeing strong PC growth, as incomes rise and more marketing efforts are targeted there. And the smartphone and tablet craze, which PC makers are desperately trying to latch onto, benefits a company such as Intel because more servers are needed to handle the crush of new mobile Internet traffic. Qualcomm's earnings in the fiscal third quarter, which ended June 26, translated to 61 cents per share. That's up from $767 million, or 47 cents per share, a year earlier. Excluding some expenses, Qualcomm earned 73 cents per share, ahead of the estimate of 71 cents per share on that basis. Revenue was also higher than the $3.54 billion analysts expected. For the current, the San Diego-based company expects earnings 75 cents to 80 cents per share on an adjusted basis, compared with the average estimate of 75 cents per share. Revenue should be $3.86 billion to $4.16 billion, Qualcomm said, compared with analysts' expectations of $3.83 billion. For the full fiscal year, Qualcomm sees earnings of $3.15 to $3.20 per share, excluding items, higher than the $3.14 per share expected. The company projects revenue of $14.7 billion to $15 billion, ahead of the $14.6 billion estimate, according to FactSet. Follow Yahoo! News on Twitter , become a fan on Facebook

European E. coli confirmed in Arizona death (AP)

ATLANTA – Health officials have confirmed the first American death tied to the food-poisoning outbreak in Europe. The Centers for Disease Control and Prevention on Friday said lab tests show an Arizona man was infected with the same E. coli bacteria blamed for the outbreak centered in Germany. The man had visited Germany and died last month. Officials have released few details about the man except that he was over 65 and lived in northern Arizona. He is the first death among the six cases in the U.S. linked to the outbreak. European officials this week said contaminated sprout seeds from Egypt were likely the source of the food poisoning. Fifty people have died in Europe, all but one in Germany. Follow Yahoo! News on Twitter , become a fan on Facebook

APNewsBreak: Visa again blocks funds for WikiLeaks (AP)

LONDON – Visa said Friday it has closed a donation channel to WikiLeaks after a payment processor briefly accepted money transfers to the anti-secrecy site. Visa and MasterCard were two of several financial and Internet service companies that severed ties to WikiLeaks following its disclosure of thousands of confidential U.S. documents. WikiLeaks founder Julian Assange claims the 7-month-long blockade has cost his online group millions. But on Thursday both companies appeared to abruptly change course when WikiLeaks' payment processor, DataCell ehf, announced that donations to the site were again being processed. That appears to have been an accident, at least as far as Visa Europe Ltd. was concerned. In an email to The Associated Press, the company said that one of its financial partners had "briefly accepted payments on a merchant site linked to WikiLeaks." "As soon as this came to our attention, action was taken with the suspension of Visa payment acceptance to the site remaining in place," the company said. It's unclear how many payments were accepted, or even if they were fully processed. DataCell Chief Executive Andreas Fink confirmed to the AP that credit card payments appeared to have halted, but said he couldn't know for sure why. He added that he wouldn't know how many payments had been successfully made to WikiLeaks until technical staff examined the logs. MasterCard did not return emails and phone calls seeking comment. ___ Online: DataCell: http://www.datacell.com/ Raphael G. Satter can be reached at: http://twitter.com/razhael Follow Yahoo! News on Twitter , become a fan on Facebook

Williams sisters, Wozniacki all lose at Wimbledon (AP)

WIMBLEDON, England – Walking away from Centre Court, Oracene Price — mother and sometimes-coach to Serena and Venus Williams — shook her head after watching one daughter lose at Wimbledon, then the other. Undeniably great as she is, even defending champion Serena found it too tough to make a deep run at her first Grand Slam tournament in a year after a series of health scares. And as successful as Venus has been at the All England Club, even she couldn't muster her best after missing nearly five months with a hip injury. "I don't think their layoffs helped their rhythm," Price said. "They both seemed to be making the same kinds of mistakes. They were hit-and-miss, here and there." They're both headed home after straight-set exits in the fourth round against far-less-accomplished opponents Monday. First, 13-time major champion Serena lost 6-3, 7-6 (6) to ninth-seeded Marion Bartoli on Court 1. Then, less than two hours later and before a Centre Court crowd that included Prince William and his new bride, Kate, five-time Wimbledon champion Venus was beaten 6-2, 6-3 by 32nd-seeded Tsvetana Pironkova. Adding to the chaotic nature of the afternoon, top-seeded Caroline Wozniacki lost, too, although she's still searching for her first Grand Slam singles trophy, whereas the Williams sisters own a total of 20. "Definitely not our best day," Venus said. "I think we both envisioned seeing this day going a little bit different." And why shouldn't they have? After all, Venus and her younger sister combined to win nine of the past 11 Wimbledon titles, including Serena's victories in 2009 and 2010. They even played each other in four of the finals in that span. "Well, I never came here thinking I would lose," said Serena, a former No. 1 whose ranking now will plummet to about 175th. "That's my attitude." It's the first time since 2006 that neither Williams is in the Wimbledon quarterfinals; Venus lost in the third round that year, while Serena skipped that tournament because of a left knee injury. Of the 12 years that both entered the field at the All England Club, this is the first neither one made it past the fourth round. "Obviously, it's not something planned," Venus said. "We rarely lose on the same day." That's true: They last lost on the same day at a Grand Slam tournament on May 30, 2008, in the French Open's third round. All in all, it was a topsy-turvy day at the All England Club. Set aside, for a moment, what went on with the Williams sisters, and digest Monday's various other happenings: • Wozniacki still has yet to make it past the fourth round at Wimbledon after a 1-6, 7-6 (5), 7-5 defeat against No. 24 Dominika Cibulkova; • defending champion and top-seeded Rafael Nadal initially thought he broke his left foot and might have to quit late in the first set, then lost the second set, but eventually beat 2009 U.S. Open champion Juan Martin del Potro 7-6 (6), 3-6, 7-6 (4), 6-4; • six-time Wimbledon champion Roger Federer dropped his first set of the fortnight — against a man he was 10-0 against, no less — before righting himself to reach a 29th consecutive Grand Slam quarterfinal; • 18-year-old Bernard Tomic of Australia became the youngest man in the Wimbledon quarterfinals since 1986, when Boris Becker went on to win his second title in a row; • 2010 runner-up Tomas Berdych went out in straight sets against 10th-seeded Mardy Fish, who never before reached the quarterfinals at the All England Club but now is the last American, man or woman, left in the tournament. "Last. ... Not what you set out to do," said Fish, who is 0-5 against Nadal heading into their quarterfinal. "It was, I guess, bad luck for the Williams sisters to lose. Unfortunate, I guess. They'll be back, I'm sure." They won't be around for the women's quarterfinals Tuesday, which are: Cibulkova of Slovakia vs. No. 5 Maria Sharapova of Russia; Bartoli of France vs. wild-card entry Sabine Lisicki of Germany; No. 8 Petra Kvitova of the Czech Republic vs. Pironkova of Bulgaria; and No. 4 Victoria Azarenka of Belarus vs. Tamira Paszek of Austria. It's the first time since 1913 that the last eight women at Wimbledon are from Europe — and, as it happens, eight countries are represented. Sharapova is the only quarterfinalist who's won a Grand Slam title; her three major championships include Wimbledon in 2004. After a day off, the men play their quarterfinals Wednesday. In addition to Nadal vs. Fish — assuming Nadal decides to play after getting an MRI exam on his foot — the matchups are No. 2 Novak Djokovic vs. Tomic; No. 3 Federer vs. No. 12 Jo-Wilfried Tsonga; and No. 4 Murray vs. unseeded Feliciano Lopez. "I'm worried, for sure," Nadal said. Neither of the women who beat the Williams sisters Monday has won a Grand Slam title, although Bartoli did reach the Wimbledon final in 2007 — before losing to Venus. Pironkova, meanwhile, produced her best Grand Slam showing at the All England Club a year ago, when she made it to the semifinals by beating Venus — coincidentally, also by the score of 6-2, 6-3. Pironkova also beat Venus at the 2006 Australian Open, yet somehow she clearly didn't make much of an impression on Mom. "I don't even remember her playing her before. They said she lost to her here a year ago," Price said. "I didn't remember the girl. I'll remember her this time." As well she should, because Pironkova befuddles the older Williams sister. On Monday, Pironkova played steadily, making only 10 unforced errors, half as many as Venus. "Today's match probably looked easier on the outside, but it took me enormous amount of power to beat her," Pironkova said. "I kept pushing her. As I said, I played well. So she probably got a little shaky, and I took over." Pironkova was 4-14 at tour-level events before her 4-0 run so far at Wimbledon. Apparently, her game takes on a whole new depth on grass courts — and against Venus. "It's kind of inexplicable why I manage to play some of my worst tennis against her," Venus said. "It's not like I'm intimidated at all by anybody on tour." Perhaps, though, players are not as intimidated as they once were when facing a Williams. Against Serena, Bartoli never backed down. Indeed, she took a page directly out of the sisters' playbook, moving a few feet inside the baseline to receive serves. Serena insisted afterward she never noticed that, nor was she bothered by any of Bartoli's many eccentricities: gripping her racket with two hands for forehands and backhands; hopping on the balls of her feet between points; taking full-cut swings between points; swaying left and right before getting ready to return serves. "It's a bit 'special,'" Bartoli said, making air quotes with her fingers. "But it's the way ... I'm feeling comfortable." Over and over Monday, she'd whip deep groundstrokes to a corner, putting Serena on the defensive. Bartoli also served quite well, finishing with 10 aces and ending the match with a 103 mph service winner. She's on a superb run right now. In her three tournaments prior to Wimbledon, she reached the final at Strasbourg and the semifinals at the French Open on clay, then won the title at Eastbourne on grass. "She should always play like this, and she would be in the top five, at minimum," Serena said. "It's like, 'Wow, where is this player throughout the rest of the year?'" That Serena herself was at Wimbledon at all — and in the fourth round, to boot — was a testament to her skill and will. Days after winning the title at the All England Club in 2010, she cut both feet on glass at a restaurant. She eventually had two operations on her right foot, then was hospitalized for clots in her lungs, then a gathering of blood under the skin of her stomach. "I think I did really well, just being able to come back and play and win some matches and just really play tough. Even today I lost, but I was able to kind of hang in there," Serena said. "And I can only get better. And that can potentially be really scary, because I can only go up from here." ___ Follow Howard Fendrich at http://twitter.com/HowardFendrich Follow Yahoo! News on Twitter , become a fan on Facebook

Diabetics get blood vessels made from donor cells (AP)

Three dialysis patients have received the world's first blood vessels grown in a lab from donated skin cells. It's a key step toward creating a supply of ready-to-use arteries and veins that could be used to treat diabetics, soldiers with damaged limbs, people having heart bypass surgery and others. The goal is to one day have a refrigerated inventory of these in various sizes and shapes that surgeons could order up as needed like bandages and other medical supplies. The work so far is still early-stage. Three patients in Poland have received the new vessels, which are working well two to eight months later. But doctors are excited because this builds on earlier success in about a dozen patients given blood vessels grown in the lab from their own skin — a process too long and expensive to be practical. "This version, built from a master donor, is available off the shelf and at a dramatically reduced cost," estimated at $6,000 to $10,000, said Todd McAllister, chief of Cytograft Tissue Engineering Inc., the San Francisco-area company leading the work. The American Heart Association considers it so promising that the group featured it on Monday in the first of a new series of webcasts about cutting-edge science. "This is tremendously exciting," because the failure of blood vessels used in dialysis is "a huge public health problem," said Duke University's Dr. Robert Harrington, a heart expert who had no role in the work. If a larger study getting under way now in Europe and South America shows success, "this is big news," Harrington said. Kidney failure, which is common in diabetics, requires dialysis to filter wastes from the blood through a connection between an artery and a vein called a shunt. It gets punctured several times a week to hook patients up to the dialysis machine, and complications include blood clots, clogging and infection. What's more, patients often run out of suitable sites for these shunts as problems develop. Plastic versions have high rates of failure and complications, too. Doctors have long wished for a natural substitute. The lab-grown vessels are free of artificial materials. They don't involve stem cells, so they're not controversial. Researchers start with a snip of skin from the back of a hand, remove cells and grow them into sheets of tissue that are rolled up like straws to form blood vessels. So far, these lab-grown vessels have been tolerated by the recipients' immune systems; no anti-rejection medicine or tissue matching is needed. That's not surprising because lab-grown skin is already used to treat many burn victims. "There are literally hundreds of thousands of patients that could use this technology," McAllister said. Each year, nearly 400,000 Americans undergo dialysis and half of them use plastic shunts. More than 160,000 people lose limbs because of poor circulation that might be improved with lab-grown vessels. About 300,000 people have heart bypass operations using blood vessels taken from other parts of the body to create detours around clogged heart arteries. Some heart patients say the leg wound from removing the long vein to create heart bypasses hurts more than the chest wound for the open-heart surgery. In 2005, Cytograft reported success with its first attempt at dialysis shunts using patients' own skin. Some of the early work was sponsored by the National Heart, Lung and Blood Institute. The new work, using donor cells, makes this advance more practical for wide use, said Dr. Timothy Gardner, a heart surgeon at Christiana Care Health Services in Newark, Del., and former American Heart Association president. "It provides the option or the opportunity for off-the-shelf graft availability as opposed to something that has to be built from the individual's own cells," he said. Cytograft plans a study in Europe and South America comparing 40 patients getting the lab-grown vessels to 20 getting plastic shunts. Studies also are planned on a mesh version for people with poor leg circulation. ___ Online: Company and video: http://www.cytograft.com ___ Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP Follow Yahoo! News on Twitter , become a fan on Facebook