dcsimg
Linux Today: Linux News On Internet Time.




More on LinuxToday


The Register: MS beats Street, ungrateful Street beats up MS, for Quarter ending 9/30

Oct 19, 2000, 14:21 (14 Talkback[s])
(Other stories by John Lettice)

WEBINAR:
On-Demand

Re-Imagining Linux Platforms to Meet the Needs of Cloud Service Providers


"Microsoft's Q1 results comfortably 'beat the Street' - but the Street seems to be getting a mite suspicious. The company yanked earnings up from $2.19 billion a year ago to $2.21 billion, but the increase came from a surge in income from company investments, up from $550 million to an impressive $1.13 billion."

"Some analysts however churlishly declined to be impressed by how effective a VC/bank Microsoft is becoming, and pointed instead to a drop in profits from operations of $12 million. So Microsoft isn't doing particularly well as far as what it's supposed to do is concerned, but is making a lot of money from what it does as well. One analyst ominously observed that Microsoft was "pulling a legacy business which accounts for 70 per cent of their revenue."

"Revenue from Office actually fell, while growth elsewhere wasn't exactly sparkling. CFO John Connors talked bravely of strong sales for Win2k server and rapid adoption of WinME, but analysts countered by sourly drawing attention to the big bang upgrade model Microsoft traditionally derives its growth from. How long can this go on?"

Complete Story

Related Stories: