Microsoft's net outpaces expectations

Article Abstract:

Microsoft's net income increased 23% to $614 million, or 95 cents per share, for its 1st qtr ending Sep 30, 1996. This compares with $499 million in earnings, or 78 cents per share, for 1995's same quarter. The company's revenue increased 14% to $2.3 billion for the period. Industry analysts had predicted 90 cents per share for the period. Microsoft implemented its strategy for competing with Netscape during the quarter, aggressively marketing its Internet Explorer Web browser and making deals with most of the major online services. The company is reportedly now focusing on its competition with Oracle Corp, the world's second-largest software company. Microsoft's strong 1st qtr and Intel's 41% increase in its 3rd qtr indicate the continued domination of the PC market by systems based on their products. Microsoft warns that its 2nd qtr results may be slightly below expectations because the company plans to defer about $125 million in revenues from the Office 97 suite.

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Microsoft net, profit margins climb sharply

Article Abstract:

Microsoft announced net income of $1.34 billion, or 50 cents a diluted share, for the fiscal 3rd qtr 1998 ended Mar 31. Stronger-than-expected sales of its Office 97 package helped Microsoft attain a 28% increase over the 3rd qtr 1997's $1.04 billion, or 40 cents a diluted share. Microsoft surpassed the expectations of analysts, who earlier had revised their per-share projections from 44 cents to 48 cents. The company's quarterly performance also boosted its net profit margins from 31% to past 35%, an astronomical level for a company of its size. Net margins totaled 30.4% in the 1997 fiscal year and 25% in 1993. Revenue surged to $3.77 billion from $3.21 billion for an 18% gain. Operating profit, which includes interest from Microsoft's $12.3 billion cash reserve, climbed to 51% of revenue. By comparison, Microsoft had a 46% operating profit for the 2nd qtr 1998 and 49% in the 3rd qtr 1997.

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Microsoft says results to top expectations

Article Abstract:

Microsoft's fiscal 3rd qtr 1998 will surpass projections, according to CFO Greg Maffei. Net income likely will exceed estimates of 44 cents by at least four cents, and fiscal 4th qtr earnings would top earlier predictions of 43 cents by 'a few pennies,' on a fully diluted basis. The company's 3rd qtr 1997 performance listed earnings of $1.04 billion, or 40 cents a share, on $3.21 billion in revenue. Both figures, on a diluted basis, are adjusted for a subsequent stock split. Microsoft attributed the strong results to its near-dominant Office desktop applications and hefty European sales. Maffei cautioned against a continuing performance, saying profit levels could decline late in 1998. Other technology companies, meanwhile, say they will be unable to meet expectations for the quarter.

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