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

[Hans Reiser]

Don't get too happy, revenues are up 18%, which is doing extremely well 
in the current economy.  They are just spending more money, not 
declining at all.

I bet the new licensing checking for XP and office has dramatically 
improved their revenues.

Hans

John J. Urbaniak wrote:

>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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