To All: The analysts thought highly of MSFT's report:
WSJ article this morning - hugely positive on msft!!!! Here's a few extracts...
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"These guys are just rolling in money," Credit Suisse First Boston analyst George Gilbert said.
"Microsoft did lower earnings expectations for its current fiscal year by a few cents. But analyst Rick Sherlund, of Goldman Sachs, said much of the decrease comes from an expected drop in interest rates that could lower the income Microsoft earns on some investments, and not any fundamental change in business outlook. "
"The company's sales growth again demonstrates how much Microsoft -- determined by federal courts to have monopoly power in the software business -- has been able to use its market heft to steer clear of many of the problems plaguing other technology companies. Microsoft's outlook remains much brighter than those of companies such as Intel Corp. and software maker Siebel Systems Inc., which this week both issued gloomy forecasts and announced large staff reductions. "
"It's phenomenal," said Robert Lund, an analyst at Daiwa Securities America. David Readerman, who follows the company for Thomas Weisel Partners in San Francisco, said the company is "nowhere near the disaster" other tech outfits are experiencing.
"I thought they blew the doors off in terms of the deferred-revenue number," said Mr. Sherlund, of Goldman Sachs. Microsoft also revealed yesterday that it is now deriving about 20% of its current revenue from previously deferred revenue -- a dependable cycle that should stabilize the company's revenue over time. "
"They're producing very strong, top-line results, while at the same time, pushing recognized revenue out," said Credit Suisse analyst Mr. Gilbert. "Tell me in this environment how anybody else could do that." Mr. Gilbert said he had expected Microsoft to glean $6.3 billion in new, annuity-like revenue by July 31; Microsoft now says it already has $6 billion of such sales in the bank, he said.
JFD |
