Microsoft earnings flat, despite server launches

[OhioChick]

Source: Computer World

The company also took a $1.42B charge related to fines from the EU

April 24, 2008 (IDG News Service) Microsoft Corp. on Thursday reported quarterly earnings in line with Wall Street expectations, but down slightly from the same quarter last year, reflecting the challenges the software developer faces in an increasingly competitive market.

For the three months ended March 31, Microsoft reported revenue of $14.45 billion, in line with the consensus polled by Thomson Financial and up from revenue during the same quarter last year, when Microsoft brought in $14.40 billion.

Diluted earnings per share were 47 cents, higher than Thomson Financial's consensus of 44 cents and down from the 50 cents reported during the same quarter last year.

However, Microsoft's earnings-per-share results included a charge of 15 cents per share for the fine the European Commission charged the company for failing to comply with the commission's antitrust ruling.

Operating income was $4.41 billion, down from $6.59 billion for the same period last year. Operating income in the most recent quarter included a charge of $1.42 billion for the EC fine.



Read more: http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9080319&intsrc=hm_list

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[MannyGoldstein]

1. They're Starting To Get Linuxed

Linux is starting to knock out Windows server installations. And, for the first time, Linux is becoming as usable as Windows on the desktop.

I know we've all heard this before... but I never personally thought it to be so until now, FWIW.

Look for the Microsoft to deflate over the next few years.

[Lennon]

2. I don't think Microsoft Is worried about Linux

Red Hat Abandons Consumer Desktop Linux Distribution

http://www.efluxmedia.com/news_Red_Hat_Abandons_Consumer_Desktop_Linux_Distribution_16513.html

Linux company Red Hat has announced that it will abandon consumer desktop Linux distributions:

We have no plans to create a traditional desktop product for the consumer market in the foreseeable future. An explanation: as a public, for-profit company, Red Hat must create products and technologies with an eye on the bottom line, and with desktops this is much harder to do than with servers, Red Hat said on its website.

In its announcement, Red Hat alludes that Microsoft's quasi-monopoly over desktop systems is hard to beat. Linux commands only about 1.2 percent of the desktop market in the U.S., research group Gartner has found. However, its Red Hat Enterprise Linux Desktop will still be available at least through next year.

[Pavulon]

4. Nope

vmware makes it much easier to use large numbers of server license. They did miss the bus on the virtualization.

Linux will never replace the server or desktop os. It has its place.

[merwin]

6. Microsoft missed the bus on virtualization?

I don't think so. I was at SMB Summit last week in Dallas and they did hands-on demos of Windows Small Business Server 2008 and Essential Business Server 2008 under HyperV on a rack of HP Blades. Granted, running ~30-40 VM's on one Gigabit iSCSI SAN is far from ideal, but it ran beautifully.

Plus, the licensing is great. 1+1 licensing for Server 2008 Standard (one physical + 1 virtual), and 1+4 licensing for enterprise (one physical and 4 virtual machines) makes it very appealing for server consolidation. Buy one copy of Server 2008 Enterprise, get 4 free.

[unkachuck]

3. "...earnings per share....

....were 47 cents, higher than Thomson Financial's consensus of 44 cents and down from the 50 cents reported during the same quarter last year."

....when I first read the headline, I thought about getting a card and taking up a collection to send to billy some emergency money....but nah, he's not hurting that bad....

....in case you are, bill, I hear wal-mart's looking for greaters....

[Pavulon]

5. Share value greater than the GDP

of many nations.