Thursday, July 20, 2006

Microsoft's Net Drops 24%

Microsoft's Net Drops 24%: "Microsoft reported a 24% decline in net income as legal expenses offset increasing sales in its server and videogame businesses. The software giant announced plans to spend $40 billion on stock buybacks. Shares rose 6% after hours."

And they show no signs of obeying the EU yet. They were fined last week for a massive $357 million for not obeying a 2004 antitrust order. They are also threatened on greater penalties in future. It is not exceptional to be a software giant, Microsoft must learn to be so with legal conduct and trust. What do they think - the EU folks are jokers? I'm going to Vegas to bet that soon Microsoft is going to be disallowed from doing business in Europe, if they continue to fail to comply.

Update: They try hard though to convince shareholders and customers, and have announced $20 billion worth share repurchase plan.

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2 Comments:

Anonymous Anonymous said...

Yahoo was also off by 20% afterhours yesterday, while Google doubled profits from a year ago. Jai thinks a full MSN-YHOO combine close on the heels to their IM compatibility. Comments?

10:05 PM  
Blogger Padmanaban Kumar (paddu) said...

Yes, GOOG continues to outpace YHOO and MSFT in the search-technology market worldwide and the online advertisement market. They are gaining market share over their competitors (revenues up 77%)and at the same time controlling costs, as more advertisers shift their spending to the Internet.

The IM merge will form the world's largest IM community of 350 million users - But what I expect out of this is, Microsoft is going to lose its lock-in effect that it has on its IM and Hotmail customers. If Yahoo offers a better product, now people can easily switch to Yahoo Messenger and still be able to chat with their old friends on the MSN network (which was not possible before and hence they were locked in to MSN). And we know Microsoft does not provide the best softwares today to retain its customers.

11:55 PM  

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