Sign-ups for Microsoft Network show strength but trail some expectations

Article Abstract:

Microsoft has announced that it has signed up 525,000 subscribers for its Microsoft Network (MSN) online information service through Nov 1995. However, this figure is far below many analysts' estimates and far from placing the service on par with market leader America Online. MSN is designed to operate only with Microsoft's Windows 95 operating system, which was introduced in Aug 1995. Competing services such as America Online, CompuServe and Prodigy can work with many different operating systems, which gives them a larger installed base. Analysts has originally predicted that Microsoft would sign up 1.3 million customers in the first 12 months of the service's operation. Analysts blame the low subscriptions on lower-than-expected expected Windows 95 sales and the extremely slow performance of the network. Microsoft retorts that Windows 95 sales are on target and that the product boasts a 90% name recognition rate. Microsoft contends that it is more concerned about the Internet than competing online services.

Telegraph & other communications, Specialized Telecom Services, Wired Telecommunications Carriers, Services, Online services, Internet services, Statistics, Online information services, Information services, Information services industry, Online information service, Market Entry, Microsoft Network (Online information service)

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Microsoft eases some policies on licensing

Article Abstract:

Microsoft is loosening several of its software licensing policies for corporate users, but will step-up actions against software-sharing practices that save companies money. The new policy includes smaller minimum-purchase requirements to receive volume discount rates and is aimed at lowering the cost of purchasing software for smaller companies. The policy changes are also expected to encourage corporations to sign up for automatic upgrades of Microsoft products, which should also help sell software products based on the company's upcoming Windows 95 operating system. Automatic upgrades or maintenance contracts are similar to subscriptions that customers will receive on a regular basis. However, Microsoft's new policy is expected to reduce the popularity of concurrent or shared software licenses, which allow multiple users to share applications over a network.

Planning, Usage, Prices and rates, Marketing, Licensing agreements, Company marketing practices, Company business planning, Company pricing policy

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Microsoft's 4th-period profit rose 52%; net topped forecast a bit as revenue grew 39%; R&D spending spurted

Article Abstract:

Microsoft's profits increased 52 percent during its 4th qtr ending Jun 30, 1996. The company's income for the quarter increased to $559 million, compared with $368 million for last year's same period. Revenue for the quarter increased 39 percent to $2.25 billion. The results are slightly higher than expected by financial analysts, but Microsoft's stock prices declined $1.234 to $119.75 per share on the news. Technology stocks have been in general decline following the unexpectedly poor results of such industry leaders as Motorola, Apple and HP. Microsoft's sales of software to PC manufacturers increased 38 percent to $650 million, reflecting a continued demand for PCs in spite of reportedly declining sales. The company's sales were based on its operating systems and applications, including the popular Microsoft Office suite.

Prepackaged software, Finance, Company sales and earnings, Company Sales/Revenue, Company Earnings/Profit

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