“Several analysts expected Microsoft would come in a penny or
two ahead of the mean estimate, as it often does. They didn’t think
Microsoft would blow away the number because the September quarter
is its seasonally slowest period. Revenue was expected to come in
around $5.2 billion [vs. $5.38 billion actual].”
“Microsoft has become fabulously wealthy and faces a
quandary that many companies would love to share: It’s accumulating
cash far faster than it can spend it. The giant has been generating
about $1 billion in cash each quarter. Microsoft
Tuesday reported cash and short-term investments of $18.9 billion
on Sept. 30, up $1.67 billion from $17.24 billion on June 30.
Microsoft’s predicament is unlike that of any other company with
tons of cash. For one thing, it has very little manufacturing
expense to sop up liquidity, with high gross profit margins.”