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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (25375)	7/1/1999 2:05:00 PM
From: t2	Respond to of 74651

What exactly happened with accounting change? Anyone know? For example reported revenues increased by ~700 million for the 9 months. But expenses increased by exact same amount. (1) When MSFT reported increased revenues for the 9 months, did the unearned revenues go down? (2) How did the cost go up by exactly same amount keeping reported EPS same and not higher? 1. No change in unearned revenues---Maffei was asked and he said only Income statement is affected. (if you want to, go to MSFT website for a replay of the call---if you need the URL,let me know) 2. Brought some of their other businesses in line with the manner in which they account for their major products. As a result, expenses went up along with revenues--no effect on EPS. Maffei said that these businesses (ex MSN, Certification training is another example i think) are now a significant part of their business and have to be consistent with their the normal accounting.