Microsoft reports revenues up

CNET News.com – Front Door carries the story that \”PC sales bolster Microsoft profits. The software giant reports earnings that narrowly topped Wall Street expectations as sales rose 6 percent from a year ago. \” Not a surprise to those of us who follow Microsoft. What was surprising was the breakdown of sales across Microsoft’s seven divisions and the fact the CNET reported it without any analysis of what, if anything, those numbers meant. Perhaps a picture would have helped…


Msft2003.GIFThis one, perhaps, that would have shown that revenues were flat in client (Windows) and Information Worker (Office) divisions – no surprise with a flat economy and little innovation. That Server bumped up by 15% surprises me, Can anyone explain that one? And it’s pretty obvious, in the big picture, those are the three that matter. In the smaller divisions, though, there’s where the growth is: Mobile up an astounding 88%, Home nearly 20% and MSN 15%. Business Solutions also turned in a respectable 21%. Too bad these weren’t standalone companies: their returns would have been better than the 4.9% overall increase in sales. But then again, would the sales have occurred without the backing of Microsoft?

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