The Register: Slow Win2k uptake, flagging Office sales dog MS Q4Jul 19, 2000, 15:16 (13 Talkback[s])
(Other stories by Graham Lea)
"Almost without it being noticed, Microsoft has transformed itself from a software company to an investment company. The Q4 results announced last night show investment income up 132 per cent compared with the year-ago quarter. Investment income of $1.127 billion in the quarter represented 32 per cent of Microsoft's income before taxes. It was clear from the results that Microsoft's investments have been performing more profitably than its products, with the operating income showing 30 cents/share coming from products and 14 cents from investment income and interest."
"Revenue for the quarter was almost flat at $5.804 billion, up just 0.69 per cent on the year-earlier quarter, compared with the 23 per cent increase seen in Q3. Microsoft's ability to recognise revenue more or less as it pleases, may have been helpful here, allowing it to show this very small increase rather than a potentially headline-grabbing loss. The FY2000 revenue increased 16 per cent to $22.96 billion, and the profit was $9.42 billion, up 21 per cent."
"Microsoft's operating income was down 13 per cent for the quarter, primarily reflecting a 10 per cent decline in the sales of MS Office and tools, with Windows sales up 6 per cent, and consumer group sales up 34 per cent (but with unknown losses, despite the increase). Microsoft's productivity (mostly Office) division now makes 45 per cent of Microsoft's revenue, Windows 42 per cent, and the consumer stuff 14 per cent."