How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 476.93

+0.6%

Nov 25 3:59 PM EST

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To: Just_Observing who wrote (29055)	9/2/1999 6:14:00 PM
From: codawg	Read Replies (1) of 74651

>>Is it true that MSFT gets 40% of revenues from Office?<< I don't understand this question. MSFT gets 100% of the revenue when they sell a license for Office. Due to their conservative accounting practices they recognize less than the 100% initially, but I think the number is more like 60%. They recognize the rest in later quarters amortized over a period which I believe is 3 years. If you are talking about the percent of MSFT revenues that Office represents, then I think the 40$% number is high. I think Office sales account for something like 25-30% of revenue in a given quarter. Worrying about Star is ridiculous (for us - not for Gates and crew). I could write a long post on the reasons, but it is definitely a niche product.

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