Stock seems down $1. http://community.nasdaq.com/News/20...analyst-blog.aspx?storyid=183120#.UIGSa8XR6So
"Microsoft Corporation's ( MSFT ) first quarter earnings of 53 cents missed the Zacks Consensus Estimate by 4 cents, as PC market slowdown and stock clearance before the Windows 8 launch impacted revenue growth.
Revenue
Revenue excluding deferrals of $16.01 billion was down 11.4% sequentially and 7.9% from last year, missing estimates by 2.5%. All except the Entertainment & Devices segment contributed to the sequential decline in the last The softness in Windows was not surprising, since customers were expected to delay purchases ahead of the Windows 8 launch.
....
The consumer segment was worse impacted than enterprise (as expected), with transaction revenues declining in both. Microsoft was however upbeat about multi-year licensing revenue, which grew 15% year over year.
While there was no alleviation in pressure from tablets, particularly Apple's ( AAPL ) iPad, Microsoft mentioned that it had certified over a thousand unique Windows 8 systems, including tablets, convertibles, laptops and all-in-ones. So growth rates should pick up in the near future.
The Microsoft Business Division , which generated 34% of revenue, dropped 12.5% sequentially and 2.1% from last year. Here too, the weakness in the PC market impacted transactional revenue. However, multi-year licensing revenue grew 8%.
....
Microsoft generated 12% of revenue from the Entertainment & Devices segment, up 9.4% sequentially and flattish year over year. The segment is finally showing signs of sustainable improvement and will benefit from the holiday season in the current quarter.
Despite the market weakness that contributed to the 29% decline in Xbox units, Microsoft increased market share during the quarter from 47% to 49%. The newly introduced SmartGlass will help connect phones, PCs and tablets to Xbox, which is expected to attract more users to the platform.
Management did not shed light on Windows Phone units, but said that the device lineup for Win 8 was significant.
....
Key Takeaways
Microsoft had a more or less regular quarter, with Windows revenue impacted by purchase deferrals and S&T and Business Division also impacted by weakness in the PC market. Windows Phone numbers are encouraging, although the growth is off a small base. However, it is significant that the company was able to grow share in the gaming segment, considering the condition of the market and we think the platform approach here is the way to go.
Of course, we recognize the danger of tablets that are still largely based on iOS or Android, since these devices are eating into its netbook sales. Microsoft's Surface could be a game-changer and Win 8 will stimulate growth over the next few quarters.
However, growth in Windows 8 will be tempered by dynamics in the PC market and therefore think the shares will not gain much. The Zacks Rank on Microsoft shares is #3, which implies a Hold recommendation in the short-term (1-3 months)."
As a way of reference, when I left the company in early 2008, stock price was around $33 a share. I would have a lot less money for audio gear if I had left now instead of then
.
"Microsoft Corporation's ( MSFT ) first quarter earnings of 53 cents missed the Zacks Consensus Estimate by 4 cents, as PC market slowdown and stock clearance before the Windows 8 launch impacted revenue growth.
Revenue
Revenue excluding deferrals of $16.01 billion was down 11.4% sequentially and 7.9% from last year, missing estimates by 2.5%. All except the Entertainment & Devices segment contributed to the sequential decline in the last The softness in Windows was not surprising, since customers were expected to delay purchases ahead of the Windows 8 launch.
....
The consumer segment was worse impacted than enterprise (as expected), with transaction revenues declining in both. Microsoft was however upbeat about multi-year licensing revenue, which grew 15% year over year.
While there was no alleviation in pressure from tablets, particularly Apple's ( AAPL ) iPad, Microsoft mentioned that it had certified over a thousand unique Windows 8 systems, including tablets, convertibles, laptops and all-in-ones. So growth rates should pick up in the near future.
The Microsoft Business Division , which generated 34% of revenue, dropped 12.5% sequentially and 2.1% from last year. Here too, the weakness in the PC market impacted transactional revenue. However, multi-year licensing revenue grew 8%.
....
Microsoft generated 12% of revenue from the Entertainment & Devices segment, up 9.4% sequentially and flattish year over year. The segment is finally showing signs of sustainable improvement and will benefit from the holiday season in the current quarter.
Despite the market weakness that contributed to the 29% decline in Xbox units, Microsoft increased market share during the quarter from 47% to 49%. The newly introduced SmartGlass will help connect phones, PCs and tablets to Xbox, which is expected to attract more users to the platform.
Management did not shed light on Windows Phone units, but said that the device lineup for Win 8 was significant.
....
Key Takeaways
Microsoft had a more or less regular quarter, with Windows revenue impacted by purchase deferrals and S&T and Business Division also impacted by weakness in the PC market. Windows Phone numbers are encouraging, although the growth is off a small base. However, it is significant that the company was able to grow share in the gaming segment, considering the condition of the market and we think the platform approach here is the way to go.
Of course, we recognize the danger of tablets that are still largely based on iOS or Android, since these devices are eating into its netbook sales. Microsoft's Surface could be a game-changer and Win 8 will stimulate growth over the next few quarters.
However, growth in Windows 8 will be tempered by dynamics in the PC market and therefore think the shares will not gain much. The Zacks Rank on Microsoft shares is #3, which implies a Hold recommendation in the short-term (1-3 months)."
As a way of reference, when I left the company in early 2008, stock price was around $33 a share. I would have a lot less money for audio gear if I had left now instead of then
.
