Barnes & Noble posts third-quarter loss as Nook costs mount

The digital business is weighing on Barnes & Noble Inc., the largest traditional US bookseller.

The company posted on Thursday a loss in the fiscal third quarter, hurt by weak sales during the all-important holiday quarter for its Nook e-book readers as well as at its bookstores. Nook revenue fell 26 percent, and the company has begun cutting costs at the unit due to the sharp decline.

Barnes & Noble, based in New York, has been struggling to find its place as more readers have shifted to electronic books and competition has grown from discount stores and online rivals. The company, which has 689 bookstores in 50 states as well as 674 college bookstores, has invested heavily in its Nook e-book readers and a digital library to try to carve out a niche in the current retail landscape.

The company's founder, chairman and largest shareholder, Leonard Riggio, plans to offer to buy the physical bookstores and website of Barnes & Noble, but not the Nook unit. No terms or other details have been announced. On Thursday, the company said it has appointed board members to evaluate a proposal when it's made and the potential value of the retail business.

In the fiscal third quarter through Jan. 26, the New York company posted a loss of $6.1 million, or 18 cents per share. The company blamed the loss in part on charges stemming from weaker-than-expected sales of Nook e-readers during the holiday shopping season. Analysts had expected a profit of 53 cents per share.

In the same period the year before, the New York company posted a profit of $52 million, or 71 cents per share.

Revenue fell 9 percent to $2.22 billion — analysts polled by FactSet predicted a more modest decline, to $2.4 billion.

Revenue from its retail unit — which includes its bookstores and website — fell 10 percent to $1.51 billion. Revenue in stores open in at least one year fell 7.3 percent. Store closings and lower online sales also hurt results. Excluding Nook sales, revenue in stores open at least one year fell 2.2 percent.

Revenue from the chain's college bookstore unit fell nearly 2 percent to $517 million.

Nook revenue fell 26 percent to $316 million as the company sold fewer e-readers. Barnes & Noble company recorded $21 million in returns due to weak demand during the holiday season, and $15 million in allowances for promotions. Digital content sales rose almost 7 percent during the quarter.

The Nook unit has attracted investors — Microsoft owns 16.8 percent, while U.K. publisher and education company Pearson has a 5 percent stake. But aside from investor funding, the unit has been losing money. CEO William Lynch addressed the problems with the unit in a statement.

"Coming off the holiday shortfall, we're in the process of making some adjustments to our strategy as we continue to pursue the exciting growth opportunities ahead for us in the consumer and digital education content markets," he said.

But he added that the chain remains committed to its tablet and e-reader business.

For fiscal 2013, the company expects revenue in stores open at least one year to fall in the low- to mid-single digit range. Revenue in stores open at least one year in its college bookstores are expected to fall by a low single digit percentage.

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Don’t get too personal on LinkedIn

Have you ever received a request to connect on LinkedIn from someone you didn’t know or couldn’t remember?

A few weeks ago, Josh Turner encountered this situation. The online request to connect came from a businessman on the opposite coast of the United States. It came with a short introduction that ended with “Let’s go Blues!” a reference to Turner’s favorite hockey team in St. Louis that he had mentioned in his profile. “It was a personal connection … that’s building rapport.”

LinkedIn is known for being the professional social network where members expect you to keep buttoned-down behavior and network online like you would at a business event. With more than 200 million registered users, the site facilitates interaction as a way to boost your stature, gain a potential customer or rub elbows with a future boss.

But unlike most other social networking sites, LinkedIn is all about business — and you need to take special care that you act accordingly. As in any workplace, the right amount of personal information sharing could be the foot in the door, say experts. The wrong amount could slam it closed.

“Anyone in business needs a professional online presence,’’ says Vanessa McGovern, the VP of Business Development for the Global Institute for Travel Entrepreneurs and a consultant to business owners on how to use LinkedIn. But they should also heed LinkedIn etiquette or risk sending the wrong messages.

One of the biggest mistakes, McGovern says is getting too personal — or not personal enough.

Sending a request to connect blindly equates to cold calling and likely will lead nowhere. Instead, it should come with a personal note, an explanation of who you are, where you met, or how the connection can benefit both parties, McGovern explains.

Your profile should get a little personal, too, she says. “Talk about yourself in the first person and add a personal flair — your goals, your passion … make yourself seem human.”

Beyond that, keep your LinkedIn posts, invitations, comments and photos professional, McGovern says.

If you had a hard day at the office or your child just won an award, you may want to share it with your personal network elsewhere — but not on LinkedIn.

“This is not Facebook. Only share what you would share at a professional networking event,” she says.

Another etiquette pitfall on LinkedIn is the hit and run — making a connection and not following up.

At least once a week, Ari Rollnick, a principal in kabookaboo, an integrated marketing agency in Coral Gables, gets a request to connect with someone on LinkedIn that he has never met or heard of before. The person will have no connections in common and share no information about why they want to build a rapport.

“I won’t accept. That’s a lost opportunity for them,” Rollnick says.

He approaches it differently. When Rollnick graduated from Emory with an MBA in 2001, he had a good idea that his classmates would excel in the business world. Now, Rollnick wanted to find out just where they went and reestablish a connection.

With a few clicks, he tracked down dozens of them on LinkedIn, requested a connection, and was back on their radar. Then came the follow-up — letting them know through emails, phone calls and posts that he was creating a two-way street for business exchange. “Rather than make that connection and disappearing , I let them know I wanted to open the door to conversation.”

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Two charged with taking protected live sharks from the Keys

For the second time in weeks, federal prosecutors have ordered the arrest of people for illegally taking live sharks out of the Florida Keys.

Two officials of Idaho Aquarium Inc. in Boise were indicted on federal charges of conspiracy and illegally purchasing four spotted eagle rays and two lemon sharks, all protected species and all from Keys waters.

Ammon Covino, 39, president of Idaho Aquarium, and corporate secretary Christopher Conk, 40, were arraigned late last week in Idaho and ordered to appear in U.S. District Court in Key West on March 15.

The Idaho Aquarium is a display facility covering 10,000 square feet operating in a converted Boise warehouse. Listed as a nonprofit educational center, the aquarium opened in late 2011. It claims to offer "over 250 different species of animals and marine life" for the $9 adult admission fee.

The indictment from November was unsealed this month.

On Feb. 7, the U.S. Attorney's Office in Miami unsealed a separate indictment against two Broward County aquarium suppliers. They were charged with conspiracy to acquire and resell juvenile nurse sharks without a required permit, and angelfish larger than the maximum size allowed. Those fish from the Keys allegedly were sold to a Michigan buyer.

"While both cases relate to the marine living resources of the Florida Keys and involve violations of the Lacey Act, predicated in part on [Florida law], there is no public record material to suggest there is any other relationship between the cases," said Alicia Valle, spokeswoman for the U.S. Attorney's Office.

In the indictment against Idaho Aquarium and its officials, prosecutor Thomas Watts-Fitzgerald wrote that the defendants knowingly conspired with fish collectors in the Keys to have the rays and sharks captured without permits and shipped north.

After being offered $1,250 for each live eagle ray, an unnamed fish collector eventually told Covino that permits needed to take the rays could not be obtained. Covino reportedly answered, "Just start doing it.... Who gives a ...".

The collector reportedly shipped three eagle rays in May 2012 and another in June 2012. All were sent to Covino at the Idaho Aquarium.

A second unnamed collector reportedly was solicited by Conk in June for two lemon sharks. The collector said no capture permits for lemon sharks are being issued so "the transaction would have to be conducted on the 'down low,' " the indictment says.

In a later conversation, Covino is accused of saying the lack of permits for the lemon sharks was "no big deal." The lemon sharks were purchased for $650 each and sent to Idaho in October.

Neither collector was named in the indictment.

According to the U.S. District Court documents, Covino and Conk could receive prison terms of up to five years on each of four counts.

The Idaho Aquarium could be fined $500,000. The government is seeking to seize Conk's 2005 Ford pickup truck, reportedly used to transport the fish from an airport.

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Prince Harry Dances with Kids & Learns Sign Language During Africa Trip

Prince Harry is once again proving to be a hit as a goodwill ambassador during his latest trip to Africa.

The prince stopped off in the African kingdom of Lesotho on Wednesday to visit children being supported by a British charity he founded.

PICS: Star Sightings

Harry got down on his knees to join kids in a dance during his visit to the Kananelo Centre for the deaf in a rural part of the country's capital Maseru. Harry also donned a teddy bear apron while preparing local food with the students and got a lesson in sign language.

The school is one of only two for deaf children in the country and is funded by the 28-year-old prince's charity Sentebale, which supports children who either suffer from HIV/Aids, have been orphaned, or have disabilities.

RELATED: 5 Things to Know About Prince Harry's New Girlfriend

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Miss Delaware Teen USA resigns on same day alleged porn tape surfaces

YouTube and @Melissa_M_King via Twitter

The porn video allegedly showing Miss Delaware Teen USA Melissa King (left) and a picture of King wearing her official sash (right).

Miss Delaware Teen USA, Melissa King, has turned in her crown after a sex tape emerged allegedly staring the 18-year-old beauty.

"The Miss Delaware Teen USA pageant has received a resignation letter from Miss King's attorney," Dara Busch, a spokesperson for the pageant, told the Delaware News Journal yesterday.

King's resignation came on the same day that the video hit the Web on a porn site, "where amateur girls make first time adult videos."

@Melissa_M_King via Twitter

Miss Delaware Krista Clausen (left to right), Donald Trump, and Melissa King

The site claimed Tuesday that the woman in the video was King who was crowned Miss Delaware Teen USA just five months after the film was shot in June of 2012.

In the video, a woman who resembles King sits on a bed wearing a purple dress as an off-camera interviewer asks her questions.

The man starts by asking about when she turned 18, to which the woman says, "Three months ago, in March."

According to the Miss Delaware Teen USA Web site, King's birthday is in March while the beauty queen tweeted on February 24th that, "a year ago almost , I turned 18. I'm about to turn 19 and so much has changed for the better in my life in the past year... Nothing can bring me down:)"

After delving into the woman's sexual history the interviewer asks, "You're actually a Miss Teen for a certain state, I'm not going to say the state," before the woman shakes her head and mumbles "nuh nuh."

The off-camera interviewer then wisens up and coyly asks, "You do beauty pageants?" to which the woman smiles and says, "I've done them, yes."

Besides birthdays and beauty pageants the interviewer also asks the woman in the video about why she got into porn.

"I thought it'd be fun and it sounded like I needed the money, so I just decided to do it," the young woman says.

King denied she was the woman in the tape telling The News Journal, "Absolutely not, it is not."

The Miss Delaware Teen USA is run by the Donald Trump backed Miss Universe Organization.

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Coral Gables native Martin Zweig, Wall Street wiz, dies in Florida

A decade before he foresaw the 1987 stock market crash, Coral Gables native Marty Zweig was already considered a Wall Street wizard.

Renown business journalist Dan Dorfman called him “the country’s hottest investment adviser” in 1981, his picture appeared on the cover of Money Magazine in 1982, and he was frequent guest on the PBS financial show Wall Street Week.

Wall Street Week

He wrote two best-selling books: Winning on Wall Street, in 1986, and Winning with New IRAs, in 1987.

On Oct. 19 that year, just as Zweig had predicted three days earlier on Wall Street Week, the market plummeted 23 percent.

Zweig, whose three-story Pierre Hotel penthouse is one of New York City’s most lavish residences, died Feb. 18 at another of his homes, on South Florida’s Fisher Island. He was 70. Zweig had been treated for cancer, and underwent a liver transplant in 2010 with tissue from his younger son.

Born Martin Edward Zweig on July 2, 1942, in Cleveland, he spent his formative years growing up in Coral Gables where he was known as Marty Gateman after his widowed mother remarried.

He attended Coral Gables Elementary and Ponce de Leon Junior High schools, was a Coral Gables High School varsity basketball player and track star — class of 1960 — and 2001 Cavalier Hall of Famer.

Childhood friend Richard B. Bermont, a Miami financial adviser, remembered Zweig as a great poker player even in high school, “pretty much a jokester, and the ladies loved him.’’

He legally changed his last name back to Zweig when he was 21, after his mother and Dr. Gateman divorced, said former wife Mollie Friedman.

Zweig wrote that his interest in financial began when the 1948 Cleveland Indians were playing in the World Series.

“I was the kid who knew the most about the team and had a vague idea about what batting averages mean. I had begun to love numbers. Perhaps this was a tip-off that I’d later graduate to the market.’’

He earned a bachelor’s in economics from The Wharton School of the University of Pennsylvania in 1964, later an M.B.A. from the University of Miami and a doctorate in finance from Michigan State University.

In 1984, Zweig joined with stock picker Joe DiMenna, with whom he co-founded Zweig-DiMenna Partners, their first long/short hedge fund.

Zweig also created two closed-end funds traded on the New York Stock Exchange, according to his corporate biography: The Zweig Fund in 1986 and The Zweig Total Return Fund in 1988.

In his first book, he wrote: “When playing the market, remember you must deal with probabilities, employ sensible strategies to limit risk, and get aggressive only when conditions warrant.’’

He was as quirky in his private life as he was serious about investing. Stan Smith, a Fisher Island friend, said that last year, Zweig installed a “banana yellow’’ 1934 Packard convertible in his living room.

Zweig’s memorabilia collection includes the dress Marilyn Monroe wore to sing “Happy Birthday” to President John F. Kennedy in 1962, a pair of JFK’s pajamas, suits The Beatles wore, Super Bowl rings, Heisman Trophies, Oscar statuettes and Gold Records; one of the Harley-Davidson Hydra-Glide motorcycles that actor Peter Fonda rode in the film “Easy Rider;” an outfit that Jimi Hendrix wore in concert; and the booking sheet from one of Al Capone’s arrests, and a letter written by baseball legend Mickey Mantle describing a sexual encounter at Yankee Stadium.

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Miami businessman who pleaded guilty to stealing millions from Medicare is sentenced to 14 years in prison

A local businessman who moved his mental health chain from Miami-Dade to North Carolina after the feds suspected him of a Medicare scam was sentenced to 14 years in prison on Monday and ordered to reimburse the taxpayer-funded program $28 million.

Kept behind bars since his arrest because of fears he might flee to Cuba, Armando “Manny” Gonzalez pleaded guilty in December to stealing tens of millions of dollars from Medicare by fraudulently billing the federal program and laundering the proceeds to support an affluent lifestyle.

Gonzalez, 50, a convicted cocaine trafficker who joined the Medicare rackets in the mid-2000 era, had opened a pair of mental health clinics in the Kendall and Cutler Bay areas. By 2008, Gonzalez moved himself and his business to North Carolina to stay one step ahead of federal agents.

But they caught up with him. Before his arrest in May 2012, he was planning to open another psychotherapy clinic in Tennessee.

Gonzalez was indicted with others on charges of conspiring to defraud $63 million from Medicare. He was ordered held without bail after prosecutors argued he was a “flight risk” to his native Cuba.

Dozens of Cuban immigrants charged in South Florida with trying to bilk the federal healthcare program for seniors have fled to the island, which historically has turned a blind eye and doesn’t return the fugitives to the United States because the nations do not have an extradiction agreement.

In December, Gonzalez pleaded guilty before U.S. District Judge Cecilia Altonaga to one count of conspiracy to commit healthcare fraud and one count of conspiracy to commit money laundering. Under the terms of his plea agreement, Gonzalez agreed to forfeit property valued at several million dollars, including $987,910 seized in July as well as a one-acre home, vehicles and other assets in Hendersonville, N.C.

Several defendants were charged for their alleged roles in Gonzalez’s business, Health Care Solutions Network, with 10 pleading guilty so far.

According to court records, Gonzalez’s company, Health Care Solutions Network, billed both Medicare and the Florida Medicaid program for purported mental health services that patients did not need.

Gonzalez’s three clinics -- accused of entertaining patients with TV and movies instead of providing actual group psychotherapy sessions -- collected $28 million in Medicare payments from 2004 to 2011. Justice Department lawyers said in court papers that the “vast majority” of the money “disappeared” with a “substantial portion ... laundered through shell corporations.”

Among others charged in the scheme are, John Thoen, a registered nurse, and three employees, Alexandra Haynes, Serena Joslin and Sarah Da Silva Keller. All have pleaded guilty.

Also charged in the scheme: Daniel Martinez, Raymond Rivero, Ivon Perez and Alba Serrano, operators of three assisted-living facilities in the Homestead area called Mi Renacer, God Is First and Kayleen and Denis Care.

The ALF operators, who have pleaded guilty, were accused of taking bribes from Gonzalez in exchange for supplying a steady stream of patients, many of whom suffered from dementia and Alzheimer’s disease. They could not have benefited from the therapy, prosecutors said.

“Once the unqualified patients were admitted to HCSN, Gonzalez’s employees would fabricate virtually every portion of the patients’ mental health medical records,” the Justice Department said in a statement.

“The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.”

The case was prosecuted by trial attorneys William Parente and Allan J. Medina of the Justice Department’s fraud section, with agents from the FBI and U.S. Department Health and Human Services-Office of Inspector General leading the investigation.

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Adorable Tots: Celebs and their Cute Kids!

Jennifer Hudson

Jennifer Hudson posed in front of the Oscar statue while her  little boy David Daniel Otunga Jr. made a funny face. Hudson captioned the pic, writing: "We had fun!!! Until next time ...Oh Oscar!! Big congrats to all the winners!!!"

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Helicopter prison escape foiled in Greece after massive gun battle

trikalavoice.gr

A helicopter is seen hovering over a prison in Greece as Panagiotis Vlastos attempts a daring escape.

ATHENS, Greece — A helicopter swooped down on a prison courtyard Sunday as armed men on board fired on guards and lowered a rope to help a convicted killer make his fourth attempt to escape from a Greek prison.

But the plot was foiled after the prisoner was shot and the chopper forced to land in the prison's parking lot.

The dramatic escape attempt was one of a handful involving helicopters in Greece, and the first time such plans have failed.

YouTube

The helicopter used in the failed prison escape of Panagiotis Vlastos. The aircraft was eventually forced to land in the prison's courtyard.

Panagiotis Vlastos

Authorities said the chartered helicopter — carrying two armed passengers, a pilot and a technician — first tried to rip off the chicken-wire fence surrounding Trikala prison with a hook dangling from a rope. But that didn't work, so a rope was lowered down to whisk away Panagiotis Vlastos. Another prisoner, an unnamed Albanian national also in the courtyard at the time, may also have been part of the escape plan.

At the same time, the armed passengers used AK-47 assault rifles to fire on the prison guards. One guard, who was inside a post, was slightly injured by shards of flying glass. He and others returned fire, injuring Vlastos, who had managed to climb into the helicopter, as well as the helicopter's technician. Vlastos fell from a height of about 10 feet into the courtyard, and the helicopter was eventually grounded in the parking lot.

Vlastos, 43, is a convicted murderer and racketeer serving a life term who had tried and failed three times before to escape from prison.

Prison officials told TV stations Mega and NET that they recovered well over 500 bullets fired from the helicopter. The Ministry of Justice, in statements describing the escape attempt, added that the helicopter passengers also carried, but did not use, "improvised explosive devices."

Authorities said Vlastos was wounded in the legs but is being treated in the prison hospital because his injuries were not deemed serious enough for a transfer elsewhere. The technician's hand was slightly wounded.

It was not immediately clear if the pilot and flight technician had willingly participated in the escape attempt or had been forced to fly to the prison, which is located 205 miles northwest of Athens. Also unclear was whether the second would-be escapee was in on the scheme or just happened to be in the courtyard and tried to take advantage of the situation.

The helicopter was hired from a western Athens suburb and was supposed to fly to Thessaloniki, in northern Greece. But it deviated from is flight path to head to the prison.

This is the third time a helicopter has been used in an attempted prison escape in Greece. Convicted criminals Vassilis Paleokostas and Alket Rizaj were whisked by helicopter from the high-security Korydallos prison in Athens in June 2006. They were caught, but escaped for a second time — again using a helicopter — in February 2009. Paleokostas is still at large.

Vlastos was first arrested in 1994 in the murder of two members of a rival criminal gang. He was convicted last year as the behind-the-bars mastermind of the kidnapping of shipping tycoon Pericles Panagopoulos. Panagopoulos was kidnapped in January 2009 and released after eight days, when a ransom of €30 million was paid.

While awaiting trial for the kidnapping, Vlastos tried to escape in December 2011 from Korydallos prison along with three members of armed anarchist group Conspiracy Nuclei of Fire. The four used a pistol and knives to take hostage three prison guards and 25 visiting relatives of other prisoners. The four surrendered to authorities after a five-hour standoff.

Vlastos had also tried to escape, unsuccessfully, in 1994 and 1998.

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Univision bumps NBC into fifth place

A failing NBC has left Univision the fourth most popular network in the United States — at least for now.

The latest ratings from the February “sweeps” race — a milestone moment for network ratings in the television business — had NBC fall behind its Spanish-language rival. The Doral-based network finished the sweeps period with a viewership that amounted to 1.5 percent of all adults between 18 and 49. That’s considered the key demographic for television advertisers, and it’s the most common yardstick for measuring a network’s success.

The 1.5 percent share was ahead of NBC’s 1.2 percent share. CBS dominated the contest with a 4.9 percent share, followed by Fox (2.0 percent) and ABC (1.7 percent), according to EW.com.

Univision has beaten CBS before in the ratings race, but this is the first time the Spanish-language powerhouse has bested NBC. The victory is a bit sweeter since NBC owns Univision’s cross-town rival, Telemundo. As NBC slid, Univision saw audience for its news programs and telenovelas grow.

But the ratings pecking order can be topsy-turvy. In November, NBC took the fall sweeps contest with a No. 1 ranking, thanks to big audiences brought in by The Voice, Revolution and Sunday Night Football.

DOUGLAS HANKS

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