Feeds

Despite PC slowdown, Microsoft results nudge past expectations

Beast of Redmond making nearly $6.5 billion a quarter

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

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. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.