Are Investors Losing Patience With Apple?

Investors fear that Apple has run out of ideas after it released a version of Microsoft’s surface pro and an iPhone, which was the same as last year’s.

RadioShack Plans To Sell Customer Data

RadioShack plans to keep moving forward with its plan to sell its customer data, despite opposition from a number of states.

The company has asked a bankruptcy court for approval for a second auction of its assets, which includes the consumer data.

The state of Texas, which is leading the action by the states, opposed the sale of personally identifiable information (PII), citing the online and in-store privacy policies of the bankrupt consumer electronics retailer.

The state claimed that it found from a RadioShack deposition that the personal information of 117 million customers could be involved. But it learned later from testimony in court that the number of customer files offered for sale might be reduced to around 67 million.

In the first round of the sale, RadioShack sold about 1,700 stores to hedge fund Standard General, which entered into an agreement to set up 1,435 of these as co-branded stores with wireless operator Sprint. Some other assets were also sold in the auction.

The sale of customer data, including PII, was withdrawn from the previous auction, though RadioShack did not rule out that it could be put up for sale at a later date.

The case could have privacy implications for the tech industry as it could set a precedent, for example, for large Internet companies holding consumer data, if they happen to go bankrupt.

Texas has asked the U.S. Bankruptcy Court for the District of Delaware for a case management order to ensure that in any motion for sale of the PII, RadioShack should be required to provide information on the kind of personal data that is up for sale and the number of customers that will be affected.

On Monday, Texas asked the court that its motion be heard ahead of RadioShack’s motion for approval to auction more assets.

The court had ordered in March the appointment of a consumer privacy ombudsman in connection with the potential sale of the consumer data including PII. RadioShack said in a filing Friday that it intends to continue working with the ombudsman and the states with regard to any potential sale of PII, but did not provide details.

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Is RadioShack Going Bankrupt?

Troubled electronics retailer RadioShack Corp says filing for bankruptcy protection is an option if its cash situation worsens, after reporting its tenth straight quarterly loss.

The company said it was also exploring other options, including a sale or an investment, and liquidation as the last resort.

RadioShack, whose sales have been in free-fall since 2010 as it struggles to compete with internet retailers, said in a regulatory filing it was working with its lenders and landlords to restructure its debt and cut costs.

“It would surprise me if we got to Nov. 1 without a bankruptcy,” Wedbush Securities Inc analyst Michael Pachter told Reuters.

RadioShack shares, which are in danger of being delisted from the New York Stock Exchange, were up 2 percent at 95 cents in volatile early trading.

The company said same-store sales declined 20 percent in the latest quarter, while total sales plunged to their lowest in more than 20 years.

The company is being advised by a restructuring attorney at law firm Jones Day as it tries to strike a deal with creditors to close stores, two people close to the matter told Reuters on Wednesday.

RadioShack tried to close 1,100 stores this year, but reduced that number to 200 a year when lenders did not agree to the plans.

RadioShack’s landlords, however, may be open to mass store closures if they believe it will allow them to find new tenants more quickly than in a bankruptcy, a source close to the matter told Reuters.

David Tawil, president of hedge fund Maglan Capital that focuses on companies approaching bankruptcy, said he saw “major execution risks” to RadioShack’s recapitalization and turnaround efforts.

“I don’t think that the chances are great that RadioShack survives,” Tawil said, adding that the company’s credit default swaps were trading higher, pointing to market expectations of a near-term debt default.

The company ended the second quarter with $30.5 million in cash and $658.0 million in debt, which matures between 2018 and 2019.

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Verizon Introduces HSN For Financial Firms

Verizon on Wednesday launched a new low-latency network for financial services firms that can complete a stock transaction between New York and Chicago in as little as 14.5 milliseconds.

The new Verizon Financial Network Premier Low-Latency Service shaves as much as 5 milliseconds off the company’s current offering, a change that can translate into millions of dollars for high-frequency traders.

The new service, which becomes part of the Verizon Financial Network, uses higher performance networking technology from Ciena and takes the shortest possible path between the two metropolitan areas, according to Verizon.

Verizon is targeting the service to global banks, hedge funds, pre- and post-trade service firms and money managers who use high-performance computing algorithms and networks for speedy transactions.

High-frequency trading firms require low-latency networks to execute arbitrage transactions and algorithmic trading with minimal delay. Fiber distance between trading locations introduces latency, as does the equipment used to light the fiber.

Verizon plans on expanding the new high-speed network to other U.S. markets later this year.

CME Group, a financial derivatives marketplace, plans to use the new Verizon service in its Aurora, Ill., data and colocation center to enable companies in Chicago and New York to trade on CME Group’s platforms and more quickly exchange market data.

“We’re creating a secure, reliable high-speed path along one of the busiest financial trading routes,” Chandan Sharma, managing director of Verizon’s financial vertical markets, said in a statement.

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