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  Brakes on Microsoft's growth, thanks to OSS
Time: 09:27 EST/14:27 GMT | News Source: E-Mail | Posted By: Brian Kvalheim

Microsoft Corp's fiscal 2005 sales will be unable to keep up with the gains seen in prior years even if technology spending continues to improve, the company said in a regulatory filing, citing the threat of open source software as one of the downgrading factors. "While we expect general economic conditions to remain stable with the improvements seen in the second half of fiscal 2004, we expect PC and server unit shipment growth rates to decline in fiscal 2005 from the high growth rates in fiscal 2004," Microsoft said in a filing Wednesday with the US Securities and Exchange Commission. Microsoft projected that in its 2005 fiscal year, which began July 1, global sales of personal computers will rise between 7% and 9%, translating into company revenues from the sector growing 5% to 7%.

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