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Microsoft Gets No Kick From Vista
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Written by Gizmo   
Wednesday, 25 July 2007 20:36

Seems at least some analysts are skeptical of Microsoft's claims of Vista sales prowess:

David DeJean
Information Week 

Fifty-one billion dollars is a number so big it's hard to get your mind around -- a number-of-galaxies-in-the-sky number, a Halliburton-no-bid-contract number. Still, I'm willing to believe Microsoft took in that much in its just-ended fiscal year. But Microsoft says that huge number was in some way helped by "solid customer acceptance" of Vista? Come on, I wasn't born yesterday.

Read the full story at Information Week :

That $51.1 billion is gross, of course-- gross income, not net -- and it's a new record for the world's largest software company. Microsoft reported last week that fourth quarter revenue increased 13% year-over-year to $13.4 billion and net income rose 7.3% to $3.0 billion.

So what about annual profits? Well . . . that $51.1 billion is a new record, you got that, right? . . . and, well, profits were up 7% over the same quarter last year.

So why didn't stock market analysts stand up and cheer? Reuters quoted Jane Snorek, a technology analyst for First American Funds: "There were some expectations that with this PC boom we would see some big upside, but I guess not."

That's the problem. The PC market is doing great -- like really, beyond-our-expectations, double-digit great. Worldwide PC shipments in the second quarter of this year increased by 11.7%, according to analyst firm Gartner reports. Income in Microsoft's Client division was up 13% over last year, and profit was up less, at 11%.

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