Microsoft Reports Gains in Quarter

 
 
By Peter Galli  |  Posted 2003-10-23 Email Print this article Print
 
 
 
 
 
 
 

Microsoft Corp. on Thursday reported a six percent rise in revenue to $8.22 billion in the first quarter to end-September, while operating income for the quarter was slightly up at $3.15 billion, compared to $3.03 billion reported in the prior year.

Microsoft Corp. on Thursday reported a six percent rise in revenue to $8.22 billion in the first quarter to end September, while operating income for the quarter was slightly up at $3.15 billion, compared to $3.03 billion reported in the same quarter the prior year. Net income rose to $2.61 billion, with earnings of $0.24 a diluted share, which included an after-tax equity compensation expense of some $680 million or $0.06 a share.
John Connors, Microsofts chief financial officer, said in a statement released after the financial markets closed that while corporate IT spending was slow to improve in the quarter, "we saw strength across all of our consumer businesses, driving higher than expected revenue for the company."
He also made clear that executing on its plan to better help protect customers from a growing number of security attacks were among Microsofts top priorities for the rest of the year. Strong consumer demand for PCs during the back-to-school shopping season had fueled better than expected client revenue during the quarter, he said. Server and Tools had also grown 15 percent to $1.87 billion in the quarter year-on-year, with Windows Server, Microsoft SQL Server and Microsoft Exchange all recording double digit revenue growth.
"Windows Server 2003 has sold over two times as many licenses as Windows 2000 Server over the same period of time since launch. In addition, with over 120 million seats sold worldwide, Exchange continues to be a leading messaging solution for companies," he said. Connors also pointed to this weeks release of Office System 2003, saying that customers who acquired Office during the quarter under review included Accenture, Ace Hardware Corp. and Gold Kist, Inc. Connors also offered the following guidance for the current financial quarter to December 31: revenue of between $9.7 billion and $9.8 billion was expected, with operating income of $3.2 billion and $3.3 billion, including an equity compensation expense of approximately $1.0 billion. Diluted earnings per share are expected to be in the range of $0.23 and $0.24, including equity compensation expense of approximately $0.06. For the full fiscal year to end-June 2004, Microsoft expects revenue of between $34.8 billion and $35.3 billion; operating income of $11.4 billion and $11.7 billion, including an equity compensation expense of approximately $4.0 billion. Diluted earnings in the range of $0.86 and $0.88a share are expected, including equity compensation expense of approximately $0.24, Connors said.
 
 
 
 
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at www.eweek.com.

 
 
 
 
 
 
 

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