Microsoft's earnings hot streak cools; results for the 4th period mask a potent performance a special reserves swell
Article Abstract:
Microsoft's earnings for its forth qtr ended Jun 30, 1997 barely exceeded the expectations of Wall Street analysts. The software giant reported 80 cents a share, or $1.06 billion as its net income, an 89% increase over the $559 million, or 43 cents a share gains it experienced in the fourth qtr of 1996. The company decided to funnel $131 million of its quarterly earnings into a special account called, unearned revenues. The account has been set up to hold money that the company has earned by not yet reported. The monies in the account will be used in future quarters to finance the customer support and upgrades associated with the products that customers have already paid for. Had Microsoft not chosen to place so much of its revenue into the special fund, its quarterly gains would have been considerably higher than the analyst's expectations.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Microsoft vows to appeal bar to 'bundling.' (Government Activity)
Article Abstract:
Microsoft announced that it will appeal US District Judge Thomas Penfield Jackson's preliminary injunction barring it from forcing PC manufacturers to include its Internet Explorer software with its Windows OS. Plans call for Microsoft to offer PC makers a choice between two software products, while its appeal pends against the court order. PC makers that choose to bypass Internet Explorer either can delete the browser files from its Windows 95 software, or employ a 1995 version of Windows 95. The Justice Department criticized Microsoft, saying it is failing to comply with Jackson's order. Microsoft's move marks a counterattack against Jackson's decision, which Microsoft says oversteps legal bounds and contains legal errors. Numerous PC manufacturers have said they intend to keep bundling Internet Explorer and Windows.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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