Hi Don. MSFT earnings come in below estimates you say eh, <G>? ...........
Another huge quarter for
Microsoft
By Margaret Kane, ZDNN
10.20.97 6:00 pm ET
In a day of shocks for Microsoft Corp., it handed investors one, beating
expectations for the first fiscal quarter and topping $3 billion in sales.
The Redmond, Wash., giant reported net income of $663 million, or 50
cents per share, including a $296 million charge to write off in-process
technology acquired with the purchase of WebTV Networks Inc.
Microsoft bought WebTV in August for $425 million in cash and stock.
Without the charge, earnings per share were 72 cents, slightly higher
than analysts were expecting. Although Microsoft generally tops
expectations, analysts were not expecting the company to dazzle them
quite as much this quarter.
"It's a September quarter, so the numbers aren't going to set the world
on fire," said Neil Herman, analyst at Salomon Brothers in New York.
Sales for the quarter were $3.13 billion, up from $2.3 billion in the
year-ago quarter, but below the $3.175 billion the company pulled in the
June quarter. Server product sales grew compared to last year, and
Microsoft Office 97 sales were strong, the company said.
But going forward, the company expects to see fewer product launches,
and added that "operational efficiencies" would not likely continue at the
same rate.
Earlier today, the U.S. Department of Justice announced its was seeking
a civil contempt charge on anti-trust issues, accusing the company of
violating a 1995 consent decree, and asking for a $1 million per day fine
against Microsoft.
That drove Microsoft's stock down sharply mid-day, but analysts said it
could pick up tomorrow, depending on the first quarter figures.
"I wouldn't be surprised to see the stock rebound (Tuesday) after the
quarterly earnings are announced. Everything was going as normal
(Monday) until this happened," said Herman.
"What's happening with the stock today is 100-percent related to the
DOJ charges."
Microsoft's stock did in fact close up 38 cents at $132.62.
======================================================================
Heh. These guys will "never" let that happen.
Vinod. -- The 6.5B? Well, .... errr... that's history <s>. Oh, don't bet that MSFT's gonna hit that 120 yer lookin' for <g>. |
