Software firms are expected to hit earnings forecasts for latest quarter

Article Abstract:

Numerous software companies should meet their Sep 1998 qtr forecasts, but analysts are concerned about an industry slowdown in 1999. One problem stems from the international financial crisis, as corporate customers are reducing their capital spending. This trend probably will subject corporate software vendors to additional analyst scrutiny on their 1999 forecast. Second, the Year 2000 computer problem is forcing IT departments to concentrate on existing systems instead of purchasing and developing new systems. Microsoft will report net income of $1.3 billion, or 50 cents a diluted share, for the 1st qtr 1999 ended Sep 30, according to Montgomery Securities. By comparison, the world's largest software vendor earned $959 million, or 36 cents a share. Sales of Office, Windows 98 and a switch from business users from Windows 95 to the more lucrative Windows NT workstation fueled Microsoft's revenue growth. Other companies mentioned are PeopleSoft, Siebel Systems, Computer Associates International and BMC Software.

Computer Software, Software, Finance, Market trend/market analysis, Corporate growth, Industry growth

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Microsoft lines up NT as its next strategic weapon; earnings for quarter exceed estimates, driven by sales of Windows 95

Article Abstract:

Despite Microsoft's reports of rising net income of 57 cents per share for the fiscal 2nd qtr ended Dec 31, 1996 being attributed to strong Windows 95 sales, the company maintains that sales of NT servers will provide it with the most significant future growth. Although NT is consistently outsold by Windows 95, Microsoft is relying on NT to be the foundation of its future strategies to sustain growth and market share dominance over its competitors. Microsoft's plans include using the dependance of corporate networks on NT to increase sales of its BackOffice network applications. David Readerman, a Montgomery Securities analyst, predicts that the combination of Microsoft's BackOffice and NT sales will reach approximately $2.3 billion in the fiscal year ending Jun 30, 1997. Readerman also believes that these sales will nearly double to $4.2 billion in the same period in 1998.

Usage, Marketing, Company marketing practices, Company analysis, Graphical user interfaces

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For Windows 98, a carefully subdued rollout

Article Abstract:

Microsoft is promoting its long-awaited Windows 98 release as an operating system for consumers but is telling corporations to bypass Windows 98 and migrate directly to Windows NT. In fact, Microsoft intends to eventually move all its customers to Windows NT and admits that the technology underpinning Windows 95 and Windows 98 has no future. The aim is to get rid of the last traces of MS-DOS and move on to NT's more up-to-date structure, which can support improved performance, reliability and security. A consumer, or 'lite,' version of NT is expected by about the year 2000, so that the phaseout of the older product line can conclude. A Microsoft senior VP says the forthcoming release will be the last Windows 98 release.

Systems Software Pkgs (Micro), Planning, Product introduction, Product Announcement, Microsoft Windows 98 (Operating system), Networking software product introduction

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