Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: t2 who wrote (21495)	4/24/1999 9:47:00 AM
From: blankmind	Respond to of 74651

Salomon Smith Barney - 4/23/99: " "Microsoft recently announced that more than 600 industry applications are now being shipped for SQL Server 7.0." "Platinum, Microsoft's forthcoming version of its Exchange product, is expected to ship in Beta form next month. This latest version is likely to incorporate online presence-sensing and real-time text messaging technology. Platinum should allow users to share applications in real time and will likely incorporate instant messaging using a data federated approach, circumventing the need for a central messaging server."

To: t2 who wrote (21495)	4/24/1999 9:50:00 AM
From: blankmind	Read Replies (1) \| Respond to of 74651

Salomon Smith Barney - 4/23/99: - as you can see, they're expecting some strong upside from MSFT's upcoming product releases. No mention of lawsuit which will be a counter balance. note on the "1M" - means "Buy" - on a scale of 1 to 5 & "M" means "moderate risk" News of the Week Microsoft (MSFT, Buy -1M) Microsoft reported EPS of $0.35, above our estimate of $0.33 and consensus estimates of $0.32. The company generated revenue of $4.33 billion, essentially in line with our estimate of $4.28 billion, and unearned revenue on the balance sheet of $4.2 billion in line with our estimate, which we believe was well above consensus estimates. The earnings upside in the quarter was driven primarily by lower than anticipated growth in research and development expenses, which were about $75 million below our estimates. The company's operating margin of 51.5% was well above our estimate of 50.8% and up from the 51.1% operating margin achieved in the same quarter a year ago. With revenue growing much faster than costs, operating margins are improving, a trend we see continuing. Significant potential upside in revenue estimates exists from the release of Office 2000 and a new version of BackOffice. We believe that several factors are at play, giving Microsoft a great deal of confidence: 1) enterprise license agreements provide a very predictable and recurring revenue stream, 2) the company expects very healthy PC unit shipments, particularly to consumers in the fourth quarter, with lower PC prices being positive for Microsoft, 3) lots of insurance on the unearned revenue line on the balance sheet, 4) a likely upgrade to Windows 98 in the third or fourth calendar quarter, 5) the continued shift to higher priced Windows NT Workstation from Windows 98, and 6) continued momentum with SQL Server and Exchange.