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

To: Patrice Gigahurtz who wrote (45027)	5/21/2000 9:07:00 PM
From: Harvey Allen	Read Replies (1) \| Respond to of 74651

Patrice- There were reports that Microsoft was unable to purchase their stock in the open market due to a merger. But according to the latest financial statement (March 31 2000) they bought a bunch (almost 5 billion) in the January to March period. They also continued to sell Put Warrants in the period although less than in January to March 1999. $472 million vs. $757 million. Nine Months Ended 1999 2000 -------------------------------------------------------------------------------------- Operations Net income $ 5,583 $ 7,012 Depreciation and amortization 514 1,040 Gains on sales (160) (156) Unearned revenue 4,139 4,278 Recognition of unearned revenue from prior periods (2,832) (4,058) Other current liabilities 471 (823) Accounts receivable (192) (558) Other current assets (104) (328) -------------------------------------------------------------------------------------- Net cash from operations 7,419 6,407 -------------------------------------------------------------------------------------- Financing Common stock issued 1,102 1,750 Common stock repurchased (1,527) (4,872) Put warrant proceeds 757 472 Preferred stock dividends (21) (13) Stock option income tax benefits 2,238 4,002 -------------------------------------------------------------------------------------- Net cash from financing 2,549 1,339 -------------------------------------------------------------------------------------- Just read the foot notes. Buy Backs terminated in January: Stockholders' Equity During the first three quarters of fiscal 2000, the Company repurchased 54.7 million shares of Microsoft common stock in the open market. In January 2000, the Company announced the termination of its stock buyback program. To enhance its stock repurchase program, Microsoft sold put warrants to independent third parties. These put warrants entitle the holders to sell shares of Microsoft common stock to the Company on certain dates at specified prices. On March 31, 2000, 163 million warrants were outstanding with strike prices ranging from $69 to $78 per share. The put warrants expire between June 2000 and December 2002. The outstanding put warrants permit a net-share settlement at the Company's option and do not result in a put warrant liability on the balance sheet.