How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 490.06

+0.7%

3:59 PM EST

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To: Eric Wells who wrote (47982)	7/18/2000 6:09:26 PM
From: Charles Tutt	Read Replies (1) of 74651

We can approximately adjust away the first two items you list. Subtract $100 million from the June '99 operating income (the $200 million revenues you cite at 50% margin), and add $269 million (the difference in sales and marketing) to '00 operating income. That would make the pre-tax operating comparison $2703/5521=0.4895 per diluted share in '99 vs. $2793/5537=0.5044 in '00, or an increase of about 3% if I've calculated correctly -- still pretty anemic. You'll have to tell us how much of an adjustment to make for item 3, but I doubt it will be enough to make this look like a blowout. All JMHO, of course. Or, if you prefer, JMOBO.

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