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Microsoft posts solid profits
Microsoft Corp. on Thursday posted fiscal first-quarter results that -- excluding a $1.2 billion investment charge -- beat Wall Street expectations as the software giant saw solid growth in its line-up of popular business products.
Microsoft Corp. on Thursday posted fiscal first-quarter results that -- excluding a $1.2 billion investment charge -- beat Wall Street expectations as the software giant saw solid growth in its line-up of popular business products.
Excluding the non-cash charge, which worked out to 20 cents a share and marked the second consecutive quarter Microsoft has taken an investment hit, the company posted a profit of 43 cents a share, above most analysts' expectations.
Microsoft said net profits for its fiscal first quarter ended Sept. 30 were $1.28 billion, or 23 cents a share, compared with $2.2 billion, or 46 cents a share a year earlier, before an accounting adjustment. Including the adjustment, earnings per share were 40 cents a year earlier.
First-quarter revenues were $6.13 billion, up nearly 6 percent from the $5.8 billion a year earlier.
The maker of the Windows operating system was expected to earn between 38 cents and 42 cents a share on revenues of between $5.9 billion and $6.5 billion, according to Wall Street tracking firm Thomson Financial/First Call.
"They did pretty well all things considered. When you look at it, it looked like margin control, that is cost control leading to better margins, and a strong server business," said Scott McAdams, president of brokerage McAdams Wright Ragen.
Looking ahead, Microsoft said it expected revenues to climb to between $7.1 billion and $7.3 billion in the second quarter, up at least 9 percent from $6.5 billion last year, as it rolls out its new Windows XP operating system and Xbox video game console. Bureau Report
Microsoft said net profits for its fiscal first quarter ended Sept. 30 were $1.28 billion, or 23 cents a share, compared with $2.2 billion, or 46 cents a share a year earlier, before an accounting adjustment. Including the adjustment, earnings per share were 40 cents a year earlier.
First-quarter revenues were $6.13 billion, up nearly 6 percent from the $5.8 billion a year earlier.
The maker of the Windows operating system was expected to earn between 38 cents and 42 cents a share on revenues of between $5.9 billion and $6.5 billion, according to Wall Street tracking firm Thomson Financial/First Call.
"They did pretty well all things considered. When you look at it, it looked like margin control, that is cost control leading to better margins, and a strong server business," said Scott McAdams, president of brokerage McAdams Wright Ragen.
Looking ahead, Microsoft said it expected revenues to climb to between $7.1 billion and $7.3 billion in the second quarter, up at least 9 percent from $6.5 billion last year, as it rolls out its new Windows XP operating system and Xbox video game console. Bureau Report