MSFT ($62 to $72)beats Street, reaffirms guidance
April 19, 2001 07:01 PM ET
by Michelle Rushlo
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Software giant Microsoft (MSFT) topped Wall Street's expectations for its third quarter, finishing 2 cents per share ahead of analysts' expectations.
The company generated $6.46 billion in revenue and net income of $2.45 billion, or 44 cents per share.
Analysts surveyed by First Call/Thomson Financial expected Microsoft to report earnings of 42 cents per share on $6.1 billion in revenue.
"We are pleased with the March-quarter results. Our results were good across each of our segments," said Microsoft Chief Financial Officer John Connors in a conference call with analysts.
Windows 2000 a boon
He said the company was particularly pleased with sales of Windows 2000 and the new .Net server software. "We're winning a lot more business that might have gone to a Sun/Oracle platform a year ago," Connors said.
While personal computer sales growth is in the low-single digits worldwide, the company saw strong growth in its revenue generated through computer makers. Microsoft officials said they benefited from a higher percentage of systems being sold with Windows 2000, a higher margin product than older versions.
Connors did, however, caution that continuing economic woes could impact demand for its products.
He said revenue for its fiscal fourth quarter, which ends June 30, is expected to be in the range of $6.3 billion and $6.5 billion. Analysts were expecting $6.4 billion.
On earnings per share, Microsoft said it expects to report 41 or 42 cents after taking a 1 penny charge related to its acquisition of Great Plains Software. Analysts had expected 43 cents per share.
Looking to 2002
Connor also offered preliminary projections for Microsoft's fiscal year 2002, which starts in July. Assuming the economy does not substanially worsen or dramatically improve, the company should generate revenue of $28 billion to $29 billion and earnings per share between $1.90 and $1.94.
Microsoft's stock closed up 4 percent in regular trading today and was up another 6 percent in after-hours trading shortly after the conference call concluded |
