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  Microsoft's Hard Line on Software Is Working
Time: 02:06 EST/07:06 GMT | News Source: The Street.com | Posted By: Byron Hinson

Microsoft's new hard-nosed tactics on software licensing apparently have worked, as an analyst says the tech leader's fiscal first quarter is tracking according to expectations. In a note released early Wednesday afternoon, Goldman Sachs analyst Rick Sherlund said he believes Microsoft's first-quarter results are likely to be tracking in line with his estimates, which peg earnings at $1.88 a share in fiscal year 2003. Sherlund cited strong licensing activity in July, which was the deadline for large business customers to switch to a subscription-based payment system. Large business customers had to upgrade their Microsoft software and change to a subscription-based payment system -- or else face higher licensing fees for software in the future.

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