Since Apple Inc. (AAPL) unleashed the iPhone on the world back in 2007 the company has sold millions of the device and created a massive market for iPhone apps. Developers have invested a lot of time and money in creating apps for the popular iPhone, but have been frustrated by the lack of guidelines and communication with Apple.

Developers have been begging for more insight into the approval process, and today Apple gave them what they wanted by releasing the guidelines it uses to review submitted apps.

Adobe Systems (ADBE - option chain) shares are rising today after after Apple (AAPL) announced it will relax restrictions on development tools used by mobile application developers. The change in policy allows developers to resume using ADBE's Flash software in their apps, which had been effectively banned before the announcement. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ADBE.

While On2 Technologies (AMEX: ONT) has strong video compression solutions, the company failed to get much traction over the years (a key reason was the licensing fee structure). It's been especially painful for shareholders.

But today there was some good news: Google (NASDAQ: GOOG) agreed to purchase the company for $106.5 million in stock. On the news of the deal, On2's shares spiked 49% to $0.57.

By Ken Nagy, CFA, Zacks Investment Research.

June quarter revenue for Actel Corporation (NASDAQ: ACTL) fell short of consensus expectations, as the company was short of Flash product. However, the EPS was in-line. Although Flash product growth was lower than expected, the product line is expected to remain strong for the next few years. Actel continues to enjoy a high margin in select markets, although the quicker ramp of new products is likely to exert some negative pressure.

The exposure to the consumer market is also increasing, so working capital requirements are likely to increase. The stock looks attractive at these price levels, but we are reiterating our Hold rating in view of the broader market uncertainties.

Actel's expertise, the limited competition, and its embedded customer base have enabled the firm to emerge as the leading supplier of HiRel FPGAs to the military, avionics and space industries. Actel's Flash products are beginning to take off. The company has introduced seven product families to date, with varying success. Flash products generated 24% of revenue in Q2 of 2008. The management also expects significantly lower cost of production within the 1Q09-2Q09 timeframe, as the company proceeds on the learning curve and also ships higher volumes.

In a move to create a worldwide PC operation, Taiwan-based PC maker Acer has agreed to buy Gateway (NYSE: GTW) for $710 million, or $1.90 a share. Gateway closed at $1.21 on Friday.

Gateway will also exercise it right of first refusal to buy Europe PC company Packard Bell. Chinese PC company Lenovo has been trying to acquire the firm to improve its reach in Europe.

Douglas A. McIntyre is a partner at 24/7 Wall St.

MAJOR PAPERS:

• The Wall Street Journal reported that the list of advertisers defecting from Don Imus's morning TV show on General Electric Company's (NYSE: GE) and Microsoft Corporation's (NASDAQ: MSFT) MSNBC is growing, resulting in NBC Universal pulling the show off the air immediately.

• Sources involved with the process reported that Viacom Inc's (NYSE: VIA) music publishing catalog Famous Music is attracting a lot of interest from major music labels to former music executives backed by private-equity, reported the New York Post.
• France's Thales and American aerospace giant Boeing Company (NYSE: BA) are reportedly looking to make a joint bid for a new $31.7B contract to supply the British Army with 3,000 new medium-weight armored vehicles, reported The Business.
• The Independent reported that scientists have discovered a technique for "pain-free, highly effective chemotherapy," a huge breakthrough in cancer treatment.

• DigiTimes.com reported, citing industry sources, that Powerchip Semiconductor Corporation has lowered its DRAM spot prices almost 15% due to fierce price competition, but the sources noted that the low prices have not been able to stimulate demand in the DRAM market.