On Jan 26, 8:56 am, "amicus_curious" <A...@xxxxxxx> wrote:
> "Roy Schestowitz" <newsgro...@xxxxxxxxxxxxxxx> wrote in messagenews:4260098.z24FXXLitp@xxxxxxxxxxxxxxxxxx
>
> >MicrosoftFeels the Pain of Vista's Delay and Losses in Search
>
> > ,----[ Quote ]
> > | So now we know how much the delay inMicrosoft's(MSFT) launch of its
> > | Vista operating system cost the company: $1 billion inprofits, and
> > | $1.64 billion in deferred revenues. (Profitsdeclined in
> > | just-announced quarter to $2.6 billion, from $3.6 billion last
> > | year). The question now is whetherMicrosoftcan make it up
> > | in short order.
> > `----
>
> >http://blogs.business2.com/business2blog/2007/01/vista_delay_low.html
>
> > Linux is where the increasedprofitsare at (see below). Growth
> > opportunity
> > and innovation requires reuse, interoperability, and cooperation.The Street does not agree:
>
> "Analysts polled by Thomson Financial expected the Redmond, Wash.-based
> software maker to make 23 cents per share.
>
> Revenue rose to $12.5 billion, a 6 percent gain from $11.8 billion in the
> year-ago quarter. Analysts were expecting just shy of $12.1 billion.
>
> "Overall, it was a strong quarter," said Robert Breza, an analyst at RBC
> Capital Markets.
>
> After closing at $30.45 on the Nasdaq Stock Market before the earnings
> release,Microsoftshares gained 55 cents, or 1.8 percent, to $31 in
> extended trading.
>
> Windows Vista and Office 2007, the latest editions ofMicrosoft'sflagship
> products, do not hit the consumer market until Tuesday, though they have
> been available for businesses since Nov. 30.
>
> As a result,Microsoft's"client" division, responsible for Windows, posted
> a 25 percent drop in sales to $2.59 billion. And the business division,
> which includes Office, saw a 5 percent drop to $3.51 billion.
>
> The declines were expected, becauseMicrosoftheavily deferred Windows and
> Office revenue from the second quarter to the current period. That was done
> to account for coupons that recent computer buyers got to let them upgrade
> their existing software to Vista and Office.
>
> The deferrals trimmed $1.64 billion fromMicrosoft'ssecond-quarter revenue
> and $1.13 billion, or 11 cents per share, fromprofits. If not for the
> deferrals,Microsoftsaid revenue would have leaped 20 percent in the
> quarter.
>
> "That's impressive growth for any company, let alone one of our size," Chief
> Financial Officer Chris Liddell said in a conference call."
>
> Apparently most people would rather have a Vista coupon than a Linux DVD.
> In any case, the missing money was not lost, just stuck in the chute for a
> few weeks.
Once again Roy Schestowitz shows that he knows absolutely nothing about
finances. This shouldn't be surprising given the fact that his mommy
and daddy still support him and that he's never held a job or been able
to care for himself.
People who have actually been out in the real world and have actually
dealt with financial matters would understand that GAAP (Generally
Accepted Accounting Principles) requirements mandate that companies
such as Microsoft perform their accounting using the accrual method.
One of these requirements is that a company cannot recognize revenue
until the transaction has been fullfilled. This means that the seller
can not have any remaing obligation to the buyer. Simple version - You
cannot recognize revenue (a sale) until the item has been shipped.
It is very clear from the financial report, Microsoft saw strong sales
of Vista and has received payment from vendors. Although Microsoft has
already sold and been paid for Vista, they cannot legally recognize
revenue for this sale until they've actually shipped the product.
I still find it hillarious how Roy Schestowitz pretends the he knows
what he's talking about when he is obviously clueless. Luckily people
who actually understand things like this (the financial markets) do
understand. If Roy were to give his financial "theory" to a room of
investors, not only would they disagree, they would laugh him right out
of the room.
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