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  Microsoft Announces Record First Quarter Revenue
Time: 18:38 EST/23:38 GMT | News Source: Microsoft Press Release | Posted By: Byron Hinson

Microsoft Corp. today announced revenue of $7.75 billion for the quarter ended Sept. 30, 2002, a 26 percent increase over revenue of $6.13 billion for the same quarter last year. Operating income for the first quarter was $4.05 billion, compared to $2.90 billion in the same period last year. Net income and diluted earnings per share for the first quarter of fiscal year 2003 were $2.73 billion and $0.50, which included an after-tax charge for investment impairments of $291 million or $0.05. For the same period of the previous year, net income and diluted earnings per share were $1.28 billion and $0.23, which included an after-tax charge for investment impairments of $1.22 billion.

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#1 By 1845 (12.254.162.111) at 10/17/2002 7:04:46 PM
Kudos to Microsoft! How did MSN do?

#2 By 3653 (65.190.70.73) at 10/17/2002 8:25:21 PM
For the quarter, MSN® saw significant revenue growth of 23 percent excluding Expedia in the prior period, driven by strong advertising sales and increased end-user subscriptions.

Consensus estimate (the guys who are supposed to know) was $0.42 - $0.43 per share. They made $0.50 per share. WOW!

This post was edited by mooresa56 on Thursday, October 17, 2002 at 20:47.

#3 By 61 (65.32.170.1) at 10/17/2002 8:37:49 PM
hmmm.... I beginning to wonder if Microsoft is cooking the books...

#4 By 1845 (12.254.162.111) at 10/17/2002 8:42:34 PM
Did I say I was surprised?

#5 By 3653 (65.190.70.73) at 10/17/2002 8:48:56 PM
And Sun's layoff of 4400 on the same day, further emphasizes that Microsoft's products are gaining acceptance in the enterprise.

Profit of $1Billion per month will help MSFT drive Nintendo right out of the console market. This independent study even thinks so...

http://www.strategyanalytics.com/press/PR00023.htm

I quote "Several factors lead to the conclusion that Nintendo will probably exit the console market"

Oh, and JWM... the monopoly is in desktop operating systems. Its not in the other 80% of the businesses they are in.

#6 By 1845 (12.254.162.111) at 10/17/2002 8:51:35 PM
I'll save you the trouble, JWM...

But the revenue they generate from the operating system (and office suite) monopoly gives them the extra cash to go into other markets. Microsoft doesn't do anything new. They use their os monopoly revenue to buy other companies in other markets rather than do it themselves.

How'd I do JWM?

#7 By 3653 (65.190.70.73) at 10/17/2002 8:59:05 PM
Last I checked Vivendi was a monopoly (water in France), but they used the cash to become the 2nd? or 3rd largest video games maker on the planet. They also have a huge media business. NOTHING wrong with leveraging cash, even when its from a monopoly.

This post was edited by mooresa56 on Thursday, October 17, 2002 at 21:01.

#8 By 1845 (12.254.162.111) at 10/17/2002 9:03:29 PM
"spot on" ? What does that mean?

#9 By 2459 (24.233.39.98) at 10/17/2002 9:05:13 PM
I'm happy. More money for R&D. More great products. :-)

#10 By 2 (24.54.153.247) at 10/17/2002 10:01:58 PM
I'm happy they did well. The earnings news helped the market today stay in the green.

#11 By 665 (64.126.91.172) at 10/17/2002 10:04:53 PM
#4, AOL/TW holds many monopolies. They aren't doing so well.

#12 By 1845 (12.254.162.111) at 10/17/2002 10:08:14 PM
JWM, you seem to look down on buying into other industries. Last week Michael Dell talked to Gartner about how Dell entered new markets. He said they would acquire a company or two in the market they wished to enter. It is a very common business practice to enter new markets via acquisition.

#13 By 1845 (12.254.162.111) at 10/17/2002 10:11:23 PM
JWM, you can certainly consider this a slam on Apple. If Apple licensed the CLI and made an Apple OS dependent namespace (somewhat similar to what Micrososft did with Java), why would that matter? Apple can't really afford to play games like that when it has such a pitifully low market share. Since there are more developers in the world that write for Windows than write for Mac, I doubt Apple would go out of its way to alienate folks that are trying to write software for their platform. I really don't see how that could benefit Apple at all.

#14 By 1845 (12.254.162.111) at 10/17/2002 10:11:44 PM
I'll second that, n!

#15 By 1845 (12.254.162.111) at 10/17/2002 10:24:05 PM
I think that eventually it will happen. Here's to hoping Microsoft doesn't prevent it!

#16 By 5444 (208.180.140.239) at 10/17/2002 10:41:17 PM
Let's see there is a project by the name of Rotor that takes the MS CLR and C# and ported it to a BSD Unix platform.

And Apple is based on a BSD kernal. Hmmm.

El

#17 By 2459 (24.233.39.98) at 10/17/2002 11:12:15 PM
There's nothing for them not to allow. All Apple has to do is get a no fee, no royalty RAND license from MS and start implementing their CLI.

Or they could help out the MONO folks.

Or they could talk to MS about a full .NET port. Rumor has it that MS has shown past interest in porting .NET to Mac.

#18 By 1845 (12.254.162.111) at 10/17/2002 11:22:26 PM
That's true, el, but the Rotor license, IIRC, only allows for academic usage. It is strictly non commercial.

#19 By 1845 (12.254.162.111) at 10/18/2002 12:20:07 AM
I think what Microsoft has on its side, JWM is the server backend for .NET Web Services. Also, I think in time we'll see them offer web services. The .NET My Services thing isn't going yet, but something like it will probably happen. The more .NET clients there are on any OS, that would mean the more residual revenue for Microsoft. I think that is the general goal. Also, I don't think Microsoft will actvely aid others in porting the CLI to non Windows platforms, but I don't think they'll impede it either. I could be wrong on that. We'll have to wait and see.

#20 By 1845 (12.254.162.111) at 10/18/2002 1:24:47 AM
Hmm, not sure about that parker. You could be right, but there are still several obstacles.

WinForms and ADO.NET are not part of the standardized CLI. For Office to be ported to .NET these namespaces would also have to be ported.

Microsoft employees - a line on the .NET show, a few words at a conference, nothing official, but then nothing official to contradict them either - have stated that it is an "if" not a "when" for Offce being written in managed code. If it is still unmanaged, then the calls to unmanaged code (like Win32 API calls) would have to be taken care of some other way.

I see these as two very big obstacles.

#21 By 1845 (12.254.162.111) at 10/18/2002 2:00:10 AM
If Office were sold on multiple platforms - Windows, Mac, Linux, Unix - perhaps there could be some financial benefit. I'm not holding my breath though, especially with the gargantuan market share Windows has on the desktop.

#22 By 2332 (12.105.69.158) at 10/18/2002 1:18:14 PM
ok... let me explain something for the BILLIONTH time:

.NET IS A STANDARD -- Microsoft CAN'T CHARGE PEOPLE FOR IMPLEMENTING THE FRAMEWORK ON THEIR PLATFORM, nor are they charging for their implementation for x86.

C# and the CLR (most of it) is both an ECMA and ISO standard... just like C or C++. When was the last time Bell Labs (who created C) charged somebody for writing a C library or compiler?

THEY CAN'T!

Ok... rant over.

#23 By 1845 (12.254.162.111) at 10/18/2002 1:55:39 PM
IIRC, RMD, the ECMA writeup says that Microsoft hasn't disclosed licensing cost, but that they reserve the right to charge for it.

#24 By 5444 (208.180.140.239) at 10/19/2002 11:41:06 PM
Well lets clarify a few things.

C# the CLR and the BCL are all part of the ECMA standard. MS just recently applied for the ISO standard status. so that is at least another 4 to 6 years off as slow as that organization moves.

Not it should be noted that the Garbage Collector is an open standard, IOW the one in the Standard is a very basic non optimized Garbage Collector. It isn't the one used by MS for example (as the Garbage collector is different between the desktop and the server version of the CLR anyway)

There of course is the fact that winforms, ADO.net, ASP.net the database access and several other libraries that are not part of the ecma spec.

El

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