Around the Net
Microsoft Earnings: You Only Live Twice
- PC World et al., Friday, July 23, 2010 2:13 PM
Under the headline, "Microsoft: Not This Quarter, Apple" PC World wrote: This still puts it about $300 million ahead of Apple, so Cupertino's going to have to wait another quarter to edge Microsoft on the revenue front."
"As far as Microsoft is concerned, the PC can die another day," wrote The New York Times. In other words, in a market dominated by mobile hype, the PC remains king. What's more, "Microsoft's sales achieved a company record and reflected a healthy technology industry that has benefited from a recent increase in corporate spending."
Indeed, Microsoft posted a 48 percent rise in net income to $4.52 billion, or 51 cents a share, from the $3.05 billion, or 34 cents a share in the comparable period last year. Analysts had expected earnings of 46 cents a share.
"Basically, the success all came from Windows 7," wrote the Seattle Post-Intelligencer. About 175 million licenses of Window 7 have been sold since the product was released last year, making it the fastest selling version of Windows.
Still, "Windows is not exciting, it's not new blood," added SeattlePI.com. As a result, "Windows doesn't promise Apple-like growth for the Redmond-based company."
Likewise, "Microsoft didn't do as well in areas where it competes with Google and Apple, both leaders in newer technologies," writes Information Week.
During the fourth quarter, Microsoft's online services group lost $696 million, while its entertainment and devices group lost $172 million. The online group includes the Bing search engine, which competes with Google, while the Xbox game console and mobile phone products fit into the entertainment and devices segment.
Online-advertising revenue rose 19% compared with the same quarter last year, to $494 million, according to Microsoft.
That said, "Shareholders may remain unimpressed by Microsoft's successes, with the company facing accelerating competition in mobile and tablet devices from Apple and Google Inc.," wrote Bloomberg, citing comments from Brendan Barnicle, an analyst at Pacific Crest Securities.
