Feeds

Microsoft's telco write-offs reduce net income by 42 per cent

But things don't look bad in general

  • alert
  • submit to reddit

The essential guide to IT transformation

Microsoft's has announced a 42 per cent fall in net income this quarter, thanks entirely to a hefty $1.24 billion write-off over its cable and telco investments.

One can perhaps sense the ghost of former CFO Greg Maffei moaning and clanking his chains through the portfolio. Greg it was who, around two years ago, circled the globe pressing money (frequently in $5 billion-sized packages) into the hands of cable and telecoms operators.

Revenues were up 6 per cent over a year ago to $6.13 billion, defying the general IT industry trend and beating analyst expectations - hence its share price has gone up 2 per cent. Operating profits rose 4.3 per cent to $2.89 billion.

Microsoft's CFO John Connors said: "This has been a challenging period for us on many fronts. But we were happy to see our results meet, and in some cases, exceed expectations."

He went on to give optimistic estimates of future quarters but then this is hardly surprising since Windows XP is due to laucnh next week and the Xbox games console is expected in November. To do anything but say the future was rosy (while accepting that there was a general PC slowdown) would have been madness.

It does seem however that Microsoft is excellent at weathering the storm. ®

Related Story

MS takes $2.6bn hit on cable, telecoms stocks

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?