Microsoft profit gained sharply during quarter
Article Abstract:
Microsoft reported strong earnings growth for the 2nd qtr 1998 but warned that the Asian financial crisis probably would slow its growth for the year. The world's largest PC software manufacturer announced quarterly profits of $1.13 billion, or 85 cents a share, on a diluted basis. This 53% improvement over the 1st qtr 1998 also exceeded analysts' estimates of 82 cents a share, according to a First Call poll. Microsoft executives said the Asian market could lower its first half 1998 revenues by $300 million from its own internal targets while dropping earnings by as much as 15 cents a share. Company revenues from the Far East and Southeastern Asia declined 8% from the 1st qtr 1998, contrasting with sharp growth in most other regions of the world. Business with the 12 Asian nations, which accounts for 13% of Microsoft's sales, had attained annual growth of about 50% since 1995.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Microsoft expects to beat earnings targets; software giant loses a legal skirmish with Sun Microsystems
Article Abstract:
Microsoft projected 3rd qtr 1998 net income of 48 cents a share, according to CFO Greg Maffei. The estimate would surpass Wall Street analysts' predictions by 4 cents a share, or 9%. Maffei added that revenue will exceed the 3rd qtr 1997's $3.2 billion by almost 18%. Strong sales of its Office line of office productivity software and an upturn in European business contributed to Microsoft's earnings surprise, the company said. Microsoft also warned of slowing growth because of sluggish sales in Asia and an overall cooling of sales. Analysts were more reserved about Microsoft's caution, given the company's precedent of consistently topping expectations. Microsoft also was ordered by a Federal District Court in San Jose, CA, to remove Sun's Java logo from Microsoft's Web site and from the retail packaging of its Internet Explorer browser software.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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U.S. facing lightning technology shifts in Microsoft case
Article Abstract:
The Justice Department's antitrust case against Microsoft requires the agency to keep up with the fast-moving Internet software market and Microsoft's quickly changing tactics. Such changes can alter business practices, which the Government considered as questionable or even incriminating, within weeks of months. By comparison, the history of federal antitrust enforcement in the computer industry reveals a slow government response. A textbook example is the Justice Department's poorly-conceived, 13-year case against IBM, which the Government dropped in 1982. New legal issues surround Microsoft deals, including those with Internet content providers displayed prominently on Microsoft's browser software. Questions remain on what kinds of exclusive arrangements a dominant producer can form with other companies.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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