[Am-info] Microsoft 2Q Income Drops 13%

[John J. Urbaniak]

Can't be true.  XP was going to save the world's economies.  Gates and
Ballmer said so themselves.

John


"Fred A. Miller" wrote:

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> Microsoft 2Q Income Drops 13%
>
> Microsoft's net income fell 13% during the second quarter ended
> Dec. 31, and earnings the second half of the year will fall
> short of analysts' predictions, as PC sales continue to slump.
> The results and outlook show how dependent Microsoft remains on
> PC software--which contributed nearly 65% of sales during the
> quarter--as the company reinvents itself around distributed
> Internet applications.
>
> Net income declined to $2.28 billion in the second quarter,
> compared with $2.62 billion a year ago. Earnings per share of
> 41 cents missed analysts' consensus estimate of 43 cents per
> share. Excluding a charge of $660 million to settle class-
> action lawsuits against the company, earnings would have been
> 49 cents per share, Microsoft said. Net revenue increased 18%
> to $7.74 billion, as the company benefited from 17 million
> copies of Windows XP sold at retail and preinstalled on new
> PCs, and from 1.5 million units of its new Xbox video game
> system.
>
> But PC sales remain Microsoft's bread and butter. Desktop apps
> contributed $2.45 billion in revenue during the quarter, a 1.6%
> drop from a year ago. Desktop versions of Windows accounted for
> $2.55 billion in sales, up 24%. But PC shipments dropped about
> 5% during the second quarter, a little worse than the company
> expected. More customers moved to annuity licenses during the
> quarter, causing Microsoft to defer some revenue. And the
> overall PC market remains unhealthy, on track for a percentage
> decline in the mid-single digits this fiscal year, CFO John
> Connors said during a conference call Thursday. "The global PC
> market continued to deteriorate in the December quarter,"
> Connors said. "We do not think we are in a recovery leading to
> growth in the near future. The second half of 2002 will
> continue to be weak."
>
> Looking ahead, Microsoft expects to earn 50 cents or 51 cents
> per share during the third quarter ending March 31, on sales of
> $7.3 billion to $7.4 billion. Analysts were expecting lower
> earnings, but higher sales. For fiscal 2002, which ends in
> June, Microsoft expects to earn $1.57 to $1.60 per share, on
> revenue of $28.8 billion to $29.1 billion. Analysts expected
> earnings of $1.83 a share on revenue of $28.6 billion. Says
> Connors, "The PC business is great for Microsoft in the long
> term, but it does not appear that the current challenges have
> passed." - Aaron Ricadela
>
> Related stories:
> Microsoft May Give Schools More Cash To Settle Suit
> http://update.informationweek.com/cgi-bin4/flo?y=eFgA0Bce7K0V20BVeW0Av
>
> Gates' Vision For The Post-PC Home
> http://update.informationweek.com/cgi-bin4/flo?y=eFgA0Bce7K0V20BFEQ0A2
>
> - --
> Fred A. Miller
> Systems Administrator
> Cornell Univ. Press Services
> fm@cupserv.org
>
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