Feeds

Despite PC slowdown, Microsoft results nudge past expectations

Beast of Redmond making nearly $6.5 billion a quarter

  • alert
  • submit to reddit

The essential guide to IT transformation

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.