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

To: Dave who wrote (53748)	12/3/2000 4:24:20 PM
From: The Duke of URL©	Respond to of 74651

"are the BEARISH statements...the Desktop division will be the slowest growing division for us in the next several years." Not exactly. The larger a division becomes, the smaller the acceleration will be percentage wise compared to a new division, even though the dollar for dollar will continue to be significant. This is not bearish, some much as it is axiomatic. Calling this bearish, is like underclocking a 1.6 P4 to 1G and then comparing it to a 1G Athlon, and then saying "clock for clock" it isn't as fast. You are using selective perception to dwell on certain points to substantiate rather than reach a conclusion. :))

To: Dave who wrote (53748)	12/3/2000 6:25:25 PM
From: David Howe	Read Replies (1) \| Respond to of 74651

<< Here's one: "...the Desktop division will be the slowest growing division for us in the next several years." >> That's not bearish if you realize how rapidly they expect the remainder of their business to grow. Read the text of Connors' discussion a bit further and you will find the following: << When you think about our businesses you should really look back to the way we segment the businesses beginning with our financial reporting for fiscal year ’01. We have four large businesses today and the three primary ones being Desktop Software, the Enterprise Software and Services, and Consumer Software and Services, each in their own right has to grow billions of dollars over the next five years. Each of them in their own right have to continue to deliver cash flow, and several of them, most notably the Consumer Software and Services group has to improve its profitability profile. We have very aggressive targets for the next five years in terms of how we can grow that consumer business. We have very aggressive targets in terms of how we think we can grow and win share in the Enterprise Software and Services business and we have realistic but good ambitions in the Desktop Software segment that we can continue to grow that at market rates or slightly higher through subscription, and most notably continue to generate very nice profits and very, very healthy cash flow to fund our R&D efforts and continue our rapid pace of investments in non-Microsoft assets. >> Does anyone want to take a guess at what he means by growth of desktop software "at market rates or slightly higher through subscriptions"? Market rates? Dave