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  Microsoft to restate earnings
Time: 00:00 EST/05:00 GMT | News Source: News.com | Posted By: Todd Richardson

Microsoft said it will restate earnings going back to its fiscal year 2002. Though the changes will not be reflected in the company's annual report for fiscal 2003, they will be reflected in its first quarterly report of 2004, the company said. Microsoft's fiscal year started July 1. The Redmond, Wash., company may offer further details when it reports quarterly earnings next week and at a July 24 meeting for financial analysts. The company has not said just how large the restatements will be, but a Microsoft representative said it expects the restated figures to nearly match estimates the company previously has given for the potential cost of expensing options. For example, Microsoft estimated that, for the 12 months ended March 31, the effect of expensing options would have been to reduce net income from $9.6 billion to just less than $7 billion--a drop of more than 27 percent.

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