Ballmer delivers sobering message at Microsoft event
marketwatch.com
Microsoft Corp. Chief Executive Steve Ballmer tempered the expectations of analysts at an event Thursday, telling them their predictions for sales of the company's new operating system are too high, while those for its operating expenses may be too low.
The New York event was held by Microsoft to lend insight into the company's strategy for its fiscal 2008 beginning in July.
Without offering a specific differing forecast, Ballmer told assembled analysts their estimates for 2008 sales of the new Windows operating system, called Vista, are too high.
"The thing people forget is a new Windows release is a chance to sustain the revenue we have, every new Windows release is not necessarily a huge revenue opportunity," Ballmer said, adding that, "people are a little bit over optimistic, or more optimistic than we are about Windows revenue."
The consumer version of Vista was released in late January, following a release to businesses in November. Microsoft deferred roughly $1.6 billion in Vista-related revenue from its third quarter into its fourth quarter of 2007, resulting from delayed recognition of holiday sales.
In fiscal 2008, however, Ballmer said "non-corporate upgrades" to Vista will not increase at a dramatic pace, following "such a large surge after the release." |
