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Re: [News] Ballmer's Worrisome Memo

__/ [ Sinister Midget ] on Wednesday 03 May 2006 07:05 \__

> On 2006-05-02, Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> posted
> something concerning:
>> Internal memo: Ballmer on Wall Street reaction
>> ,----[ Quote ]
>>| As Microsoft's shares plummeted last week, CEO Steve Ballmer issued a
>>| memo to employees to provide "some context" for the increased spending
>>| forecast that caused the negative response on Wall Street. At one point,
>>| he called it "a lesson that the entire leadership team at Microsoft will
>>| learn from."
>> `----
>> http://blog.seattlepi.nwsource.com/microsoft/archives/103091.asp#extended
>> This is the first source to contain the memo in its entirety, I believe.
> Fester's just spending it all on new lightbulbs most likely.

That increased spending argument has never persuaded me. It is being used as
Microsoft's defence/confidence. If you look closely at the early analyses --
these that came out on Friday -- you will notice that the reason is a
decline in profits/revenue (can't remember which), as well as failure to
match expectation.

The combination of increased spending (AKA panic mode) and degraded
performance does not reflect positively _at all_. How can anyone put a
positive spin to a scanrio where a hooker loses business, so she then lowers
her cost? [rhetorical]

Best wishes,


Roy S. Schestowitz
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