Feeds

Despite PC slowdown, Microsoft results nudge past expectations

Beast of Redmond making nearly $6.5 billion a quarter

  • alert
  • submit to reddit

Boost IT visibility and business value

Microsoft has just nudged ahead of expectations in its Q3 results, pushing up the share price up by as much as 6.5 per cent.

The company reported revenues up 14 per cent (on Q3 last year) to $6.46 billion, against an expected $6.3 billion. Operating profits jumped 9.6 per cent to $3 billion.

The software giant said revenues would be higher than expected over the financial year but earnings for the year would be slightly lower. This goes against the prevailing view which held Microsoft would suffer from the slowdown in PC sales. Even CFO John Connors said they had done better than they thought.

It's all thanks to uptake of Windows 2000, according to Connors. That and "growing momentum" around the .NET next-generation vision. The first point may well be true, the second is simply showmanship.

Pre-tax profits grew by a smaller 1.2 per cent to $3.7 billion thanks a drop in investment income, but earnings per share were 44 cents, up from 43 cents last year and beating the expectation of 42 cents.

Connors confirmed that PC sales has fallen and put his prediction for the next quarter's revenues at expectation-level, although he said earnings per share would drop to 41 cents.

Profits will also be hit by the release of Xbox later this year, which Microsoft will sell at a loss to grab some market share and the marketing of upcoming Windows XP won't come cheap either.

As for its Internet presence, MSN now has five million access subscribers, according to the company, which puts it second in the world behind AOL.

The results come just a day after IBM also managed to nudge expectations. These results have put extra confidence in the two companies thanks to a recent collapse in most IT companies' finances. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.