The company, which makes intelligent thermostats and fire alarms, said it discovered that a feature which turns off the alarm with a wave of the hand, Nest Wave, could be triggered unintentionally. Nest said it had halted sales to ensure no customer buys the product which requires an immediate update.
"We identified this problem ourselves and are not aware of any customers who have experienced this, but the fact that it could even potentially happen is extremely important to me and I want to address it immediately," said Nest Labs CEO Tony Fadell in a blog post.
The company will disable the feature in alarms which are WiFi-connected until a solution has been engineered. Nest said it expects the process to take at least two or three months, subject to regulatory approval from safety agencies in the U.S., Canada and the U.K.
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The company said it would also offer a refund to customers who wanted to return their Nest Protect smoke alarm.
Google agreed to acquire Nest Labs in January for $3.2 billion in cash.
TheStreet Ratings team rates GOOGLE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOOGLE INC (GOOG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GOOG's revenue growth has slightly outpaced the industry average of 16.3%. Since the same quarter one year prior, revenues rose by 16.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although GOOG's debt-to-equity ratio of 0.06 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.28, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.82% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GOOG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GOOGLE INC has improved earnings per share by 14.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GOOGLE INC increased its bottom line by earning $36.04 versus $32.47 in the prior year. This year, the market expects an improvement in earnings ($51.97 versus $36.04).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 17.0% when compared to the same quarter one year prior, going from $2,886.00 million to $3,376.00 million.
- You can view the full analysis from the report here: GOOG Ratings Report