Daily Tech Snippet: Tuesday, December 22

• Cisco reviews code after Juniper code backdoor found; more scrutiny expected: Networking equipment maker Cisco said on Monday it has launched a product review to look for tampering after rival Juniper Networks's disclosure found code in firewall software that made it vulnerable to cyber attacks. Juniper warned customers on Thursday that it had uncovered "unauthorized code" in its firewall software, saying it could be exploited to allow an attacker to unscramble encrypted communications that travel through the security devices. That prompted the code review by Cisco. Security experts said they expect other technology companies to conduct similar investigations after last week's unprecedented news from Juniper. It was the first time a major technology firm discovered the addition of an unauthorized 'back door," or code that could be exploited to facilitate cyber attacks, according to security experts. Meanwhile, the U.S. Department of Homeland Security said it was investigating how the Juniper "back door" might impact government networks.

• Toshiba Plans to Cut 7,800 Jobs as It Warns of Huge Loss:  Toshiba warned on Monday that it would incur its largest net loss ever as it tries to restructure a stable of unprofitable businesses. The Japanese company, whose financial struggles were laid bare this year in a $1.2 billion accounting scandal, said it would eliminate 7,800 jobs, mostly in its slumping consumer electronics division. That brings the number of job cuts announced this year to more than 10,000 total, or roughly 5 percent of its work force. Shedding workers is expensive in Japan, where the majority of employees enjoy legal protection from layoffs. Toshiba will have to negotiate voluntary buyouts instead, a process it said would contribute to a loss of 550 billion yen, or $4.5 billion, in the financial year ending in March. The bookkeeping scandal has been an embarrassment for corporate Japan. Though wrongdoing by businesses is hardly unheard-of here, Toshiba was among the bluest of blue-chip companies, featuring on a prominent index of businesses believed to combine profitability with clean, modern corporate governance. Instead, it turned out that the company had been massaging its earnings since the global financial crisis took hold in 2008. A committee of investigators hired by the company concluded in the summer that it had engaged in a “systematic cover-up.” The committee found problems in virtually all corners of Toshiba’s business, which encompasses products as various as refrigerators and nuclear power plants. Half the company’s board of directors stepped down. The more than 150 billion yen in profit overstatement discovered by the committee was equal to about a third of the pretax profits that Toshiba reported during the seven-year period under scrutiny.

• Ericsson signs patent deal with Apple, shares soar: Swedish mobile telecom gear maker Ericsson said it had signed a patent license deal with Apple Inc over technology that helps smartphones and tablets connect to mobile networks, sending its shares up much as 8 percent. The deal ends a year-long dispute with Apple, one of the biggest legal battles in mobile technology and Ericson said it would pave the way for cooperation between the companies on future technologies. Ericsson had said in its filing to a U.S. district court in January that Apple's license to use the technology developed by the Swedish firm had expired, and that two years of negotiations had not led to a new deal. Ericsson on Monday estimated overall revenue from intellectual property rights in 2015 would hit 13 to 14 billion crowns ($1.52-$1.64 billion) up from 9.9 billion in 2014 as a result of the agreement.

• Uber's Rival Lyft Plans to Raise Up to $1 Billion in New Funds: Ride-hailing company Lyft plans to raise as much as $1 billion in new funds, according to a Delaware state filing, in a round of financing analysts said could sharply boost the valuation of Uber’s largest U.S. rival. Lyft didn’t indicate in the Friday evening filing how much had been raised, who was investing in the round or list a valuation. Sven Weber, a financial filings expert, pegged the pre-money valuation at about $4.5 billion while Justin Byers at VC Experts estimates it closer to $3.9 billion. Lyft was valued at $2.5 billion when it announced a previous funding round in March. The latest fundraising round contained some downside protection for new investors, including the provision of extra shares should Lyft go public at a lower valuation. Lyft is competing aggressively with Uber, which recently filed to raise $2.1 billion at a $62.5 billion valuation. The discrepancies in the valuations reflect Uber’s pole position in the U.S. and its global ambitions. On Dec. 3, Lyft said it was teaming up with Uber’s biggest rivals in Asia, including China’s Didi Kuaidi, Singapore’s GrabTaxi, India’s Ola, to form a global alliance that will make their apps cross-compatible for travelers. Lyft lost $127 million in the first half of 2015 on $46.7 million in revenue, according to fundraising documents obtained by Bloomberg. It said last month it has gained market share in key markets such as San Francisco, and has a gross revenue “run rate” of $1 billion.