SEATTLE (Reuters) - Microsoft Corp. the world's largest software maker, said on Thursday its quarterly profit fell 17 percent due to a change in its stock compensation plan, but it raised its revenue outlook based on stronger personal computer demand.
Redmond, Washington-based Microsoft reported a net profit of $1.55 billion, or 14 cents per share, for the fiscal second quarter ended Dec. 31, compared with a profit of $1.87 billion, or 17 cents per share, a year earlier. Both included the cost of stock-based compensation.
Revenue rose 19 percent to hit a record $10.15 billion as more customers signed up for one-time software licenses for Windows, Office and Server products, rather than the longer-term corporate contracts that Microsoft has encouraged.
But shares in the company initially fell nearly 3 percent in after-hours trading as investors focused on the resulting larger-than-expected drop in unearned revenue, but later recovered to $27.80.
The fall in unearned revenue reflected a slower take-up of the longer-term software deals that have been seen as key to stabilizing Microsoft's sales.
"We solidly outperformed on revenues, expenses, and earnings per share, and we feel good about where we ended the quarter on unearned (revenue)," Microsoft Chief Financial Officer John Connors told a conference call.
Excluding stock-based compensation expense of 20 cents per share, and other charges, Connors said that Microsoft had a profit of 34 cents per share in the fiscal second quarter.
The year ago quarter's earnings of 17 cents per share included 7 cents per share of stock-based compensation expense.
Analysts had been expecting a profit of 30 cents on revenue of $9.74 billion, based on the average of forecasts compiled by Reuters Research, a unit of Reuters Group Plc.
Revenue rose to $10.15 billion from $8.54 billion a year earlier while unearned revenue on the balance sheet fell $395 million from the previous quarter.
Only $1.55 billion in profit this quarter.
Originally Posted by Viper
the xbox hasn't earned shit
The Xbox isn't supposed to be making money, hence the reason why it's a 20-year investment.
But hey, you tried yet again.
lol....20 year investment. That's really funny. So why all the reports that the next one will be more cost conscious? Sounds to me like investors don't want to wait 20 years for their money back.
*i can't/won't touch my invested $$$ till im 56...im 18 right now...* so 20yrs isn't so bad for me
May Peace Be With You
Hmm...well isn't that lovly! hah! like you said....20 yr investment...right.
I know, just stating that some people don't mind having their money sit for extended periods of time.Originally Posted by Viper
May Peace Be With You
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