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To: maceng2 who wrote (24383)	10/18/2002 5:41:28 AM
From: maceng2	Respond to of 74559

Can you say "Crash Up"? Microsoft moves the markets news.bbc.co.uk Microsoft new software-updating plan boosted profits Iconic computer firm Microsoft has reported far higher than expected profits, helping to restore investor confidence in the battered technology sector. After the close of stock trading in New York on Thursday, Microsoft said profits for the July to September period came in at $2.73bn (£1.7bn), beating analysts' forecasts by 8%. The figure was more than double the $1.28bn in profits that the firm reported in the same period last year. Sales came in at $7.75bn, up from $6.13bn last year, and ahead of Microsoft's own forecast of $7 - $7.1bn. The news prompted a 5.5% rise in Microsoft shares in after hours trading, and is expected to push the stock market higher when Wall Street opens later on Friday. Microsoft's stellar performance also supported European technology shares in early trade, with German software designer SAP surging more than 4% and French rival Thomson Multimedia climbing 5%. In London, software maker Logica was up about 3%. Licensing jackpot "Results for the first quarter were exceptionally strong, exceeding our expectations," said John Connors, Microsoft's chief financial officer. Analysts credited Microsoft's profits surge to the introduction of a subscription-based scheme for updating software. Microsoft, best known for its Windows software program, adopted the scheme last year with the hope of steadying its cash flow. The subscription option, which Microsoft clients have taken up more quickly than expected, allows users to spread payments over months - rather than a hefty upfront charge - for licenses to use the company's software. But users also relinquish ownership rights to the software giant's products, such as Microsoft's Office suite of business applications. Based on the healthy first-quarter results, Microsoft raised its expectations for full-year earnings, which it will report next summer.