Microsoft Gives Peek at Financial Forecast
Software maker laments the shaky economy, says it's pursuing seven business opportunities.Microsoft Corp. on Thursday painted a sober picture of the global economy and its own financial outlook, saying there are a number of assumptions and risks that investors need to be aware of. In a teleconference with the media and analysts on Thursday to present the Redmond, Wash., companys second-quarter financial results, John Connors, Microsofts chief financial officer, said Microsoft has built at least seven important assumptions and risks into its financial forecast. These include building a sales pipeline for fiscal 2003 and beyond. While Microsoft will continue to add significant resources to its field and partner-led sales effort for the rest of the year, it expects this effort to only yield results in fiscal 2004.
"Investors must also understand that we expect a sequential decline in unearned revenue for the next quarter, and any sequential growth in the fourth quarter is likely to be modest and reflects the fact that we saw such a huge surge in billing in the last half of fiscal 2002 and the first quarter of 2003a trend we dont expect to recur," he said.