re: MSFT FQ1 Earnings
Good news from Redmond.
>> Microsoft Posts Strong Quarter
Wall Street Journal
Redmond, Wash.
October 17, 2002
Microsoft Corp.'s (MSFT) fiscal first-quarter results blew past its own expectations, as the company's revenue was boosted by new long-term licensing pacts.
The software giant late Thursday posted net income of $2.73 billion, or 50 cents a share, which included an after-tax charge for investment impairments of $291 million, or five cents a share. A year earlier, the company had a profit of $1.28 billion, or 23 cents a share, which included an after-tax charge for investment impairments of $1.22 billion.
Revenue rose 26% to $7.75 billion from $6.13 billion a year earlier.
The company had projected earnings of 42 cents to 43 cents a share for the fiscal first quarter, which ended Sept. 30, on revenue of $7 billion to $7.1 billion.
The Thomson First Call consensus called for the company to earn 43 cents a share and post 17% revenue growth, to $7.15 billion.
"Results for the first quarter were exceptionally strong, exceeding our expectations," said John Conner, the company's chief financial officer, who cited quicker than expected customer adoption of its new long-term licensing programs.
Microsoft, which dominates the desktop software market through its Windows and Office franchises, recently moved many customers to new, multiyear software-licensing plans, helping to squirrel away billions in revenue to recognize during future quarters. The predictability of that long-term revenue should help Microsoft distance itself even more from its competitors, many of whom are still struggling financially from the downturn in the PC market.
Microsoft has been able to use its market heft to steer clear of many of the problems plaguing other technology companies.
Going forward, Microsoft said it now expects earnings of 45 cents to 46 cents a share for its second quarter, on revenue of $8.5 billion to $8.6 billion. Analysts are looking for second-quarter earnings of between 45 cents and 53 cents a share on revenue of $8.4 billion.
For the full fiscal year ending June 30, 2003, Microsoft raised its earnings forecast to between $1.89 and $1.95 a share, from its earlier projection of $1.85 to $1.91 a share. Revenue for fiscal 2003 is now forecast at between $32.2 billion and $32.6 billion, up from an earlier range of $31.4 billion to $32 billion.
Meanwhile, a federal judge is expected to decide, as soon as this month, what type of punishment, if any, to mete out to Microsoft for illegally protecting the monopoly of its Windows operating system. |
