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  The (New) Microsoft Machine
Time: 18:28 EST/23:28 GMT | News Source: Business 2.0 | Posted By: Alex Harris

At its day-long schmoozefest with financial analysts Thursday, Microsoft (MSFT) made much of its new products, increased research and development spending and net workforce additions. But perhaps the most important message it sent to investors regarded a seemingly humdrum change in how it will report its financial results. Behind the numbers is a signal: In a time when investors wish they'd been more diversified, Microsoft itself has diversified its business in a typically powerful fashion.

The shift is subtle. Instead of using broad product lines that all companies use to hide true results from the competition, Microsoft now will report revenue and operating profit for each of its seven business lines. The changes help Microsoft in a few ways. It enables the company to tell a growth story in that it forecasts double-digit revenue growth for its relatively small units: home and entertainment (think: Xbox),MS(Internet access and network), server software, wireless software and small-business.

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