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Microsoft posts sharp profit rise, cautious guidance
Los Angeles (AFP) July 17, 2008 Microsoft, the world's largest software maker, on Thursday reported a sharp rise in fourth-quarter and fiscal year profit but signaled a weak outlook ahead. Microsoft said net profit jumped 41 percent in its fiscal fourth quarter from a year ago to 4.29 billion dollars. Fourth-quarter earnings per share (EPS) were 46 cents, a penny shy of the 47 cents expected by Wall Street analysts. For the full-year that ended June 30, Microsoft profit rose 25.7 percent to 17.68 billion dollars, with EPS of 1.90 dollars, topping expectations of 1.88 dollars. Revenues surged 18 percent in the fourth quarter and the full year, to 15.845 billion dollars and 60.4 billion dollars, respectively. Microsoft noted it had increased its annual profit by 25.7 percent despite a 1.1 billion dollar charge to replace or repair Xbox 360 videogame consoles with a defective design. "Delivering 60 billion dollars in annual revenue is an outstanding accomplishment," Microsoft chief operating officer Kevin Turner said in a statement. "The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market." The company credited the results to demand across its product line, including its offerings for videogame consoles and business computers. However, Microsoft's view on current business disappointed analysts. The Redmond, Washington-based company said it was expecting EPS of 47-48 cents in the first quarter, slightly under the 49 cents expected, and revenue of 14.7 to 14.9 billion dollars, compared with the 15.06 billion seen by most analysts. Its outlook for the 2008-2009 fiscal year was in line with market expectations: 67.3 to 68.1 billion dollars in revenue and EPS of 2.12 to 2.18 dollars, compared with expectations of 67.29 billion dollars in sales and EPS of 2.16 dollars. "We had a strong finish in the fourth quarter, which capped off an impressive year for the company," said Microsoft chief financial officer Chris Liddell. "Looking forward, despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008." The solid earnings results came in the wake of Microsoft's failed effort to buy struggling Internet pioneer Yahoo to better fight arch rival Google for market share in online advertising and search. Microsoft remains entangled in an Internet industry drama as billionaire corporate raider Carl Icahn tries to replace Yahoo's board of directors with a slate inclined to a tie-up with the software giant. Related Links Satellite-based Internet technologies
Google profit up 35 percent at 1.25 billion dollars
San Francisco (AFP) July 17, 2008Google's second-quarter profit rose 35 percent from a year ago to 1.25 billion dollars, led by strong growth outside the US market in online advertising operations, the Internet giant said Thursday. |
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