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[LCfiner]

http://www.microsoft.com/msft/earnings/fy10/earn_rel_q4_10.mspx

I thought this was interesting. MS beat even the highest analyst expectations and recorded over 16B in revenue for the quarter.

"Redmond, Wash. – July 22, 2010 – Microsoft Corp. today announced record fourth-quarter revenue of $16.04 billion for the quarter ended June 30, 2010, a 22% increase from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.93 billion, $4.52 billion and $0.51 per share, which represented increases of 49%, 48% and 50%, respectively, when compared with the prior year period.
“This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum,” said Peter Klein, chief financial officer. “The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion.”
Product momentum continued during the quarter with the successful launch of Office 2010 and strong performance from existing products including Windows 7, which has sold more than 175 million licenses to date, Windows Server, Xbox, and Bing, which achieved its 13th consecutive month of share gain.
“We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2010,” said Kevin Turner, chief operating officer. “Our transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and we look forward to continuing our product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox Kinect.”
For the fiscal year ended June 30, 2010, Microsoft reported record revenue of $62.48 billion, a 7% increase from the prior year. Operating income, net income and diluted earnings per share for the year were $24.10 billion, $18.76 billion and $2.10, which represented increases of 18%, 29% and 30%, respectively, when compared with the prior year.
Business Outlook
Microsoft offers updated operating expense guidance of $26.9 billion to $27.3 billion for the full year ending June 30, 2011.
Webcast Details
Peter Klein, chief financial officer, Frank Brod, chief accounting officer, and Bill Koefoed, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/msft. The webcast will be available for replay through the close of business on July 22, 2011.
About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential."

 

[Bluth]

Windows 7 is easily the best OS I've ever used, so I'm happy about this.

 

[Gallbaro]

And the stock will still go nowhere.

 

[Domino Theory]

Good.

 

[LCfiner]

It's actually gone down half a percent in after hours trading.

 

[Stumpokapow]

Don't troll in your thread title. What a stupid move. Seriously. I've edited it out so that the thread doesn't become garbage.

 

[LCfiner]

Don't troll in your thread title. What a stupid move. Seriously. I've edited it out so that the thread doesn't become garbage.

i thought it was a harmless joke.

 

[entremet]

Don't troll in your thread title. What a stupid move. Seriously. I've edited it out so that the thread doesn't become garbage.

I think he was being sarcastic.

 

[Big-ass Ramp]

I didn't think it was that bad. *shrug*

 

[Dreams-Visions]

Windows 7 is easily the best OS I've ever used, so I'm happy about this.

as a new OSX user, I must say that where it counts (ability to do things as quickly and efficiently as possible with minimal problems), Windows 7 is as good as or better than OSX.

virtually no security issues, no crashes (outside of shit drivers from GPU manufacturers or something), no issues. still need to do the occasional format & reload to keep it fast...but other than that, Windows 7--considering all the hardware (current, future and legacy) it has to work with while retaining good security--it's probably the most technically impressive OS on the planet.

Spoiler

but OSX is great too. just that considering the scope and scale of things Windows 7 needs to deal with that OSX doesn't, it's a great feat

 

[PSGames]

It's actually gone down half a percent in after hours trading.

Yeah I was reading on Engadget that even though Revenue is higher than ever before the share price continues to go down. Why is that?

 

[RubxQub]

What was the old thread title?

 

[slider]

And the stock will still go nowhere.

I've always viewed MS in that behemoth category.. with IBM, Oracle... umm, not sure who else. My view's dated.

Incidentally I saw this on Engadget earlier today about rumblings against Ballmer. Crazy.

 

[Gallbaro]

Yeah I was reading on Engadget that even though Revenue is higher than ever before the share price continues to go down. Why is that?

There is not equation for stock price but the best reasons MS has been going down for the pat 10 years, I can assume:

Most investors see computing as a single firm dominated field. So many investors have probably assumed that MS is not going to dominate the next generation of computer as they have this one, leaving them to significantly smaller revenues. And even then, cloud computing will probably lead to smaller profits anyway.

 

[Rorschach]

What was the old thread title?

I think you know because you're in here. :3

 

[LCfiner]

I might as well add some more data to this.

I always find the "by segment" data interesting

making money hand over fist in the business and windows segments. but losing a ton in online services. more so than the same quarter last year. In the last 12 months, they've had a 2.3B dollar loss in the online services division.

and the E&D group didn't make money this quarter either. But i guess that group depends more on the Xmas rush to move hardware. I also expect win phone 7 to boost that department's numbers.



edit:

@Rubx. I attempted to invoke imagery of Steve Jobs and Apollo Creed training together in slow motion to win the next "fight" in 3 months. I believe it failed.

 

[demosthenes]

It's actually gone down half a percent in after hours trading.

Not as bad as Amazon...down 16% :lol

 

[RubxQub]

I think you know because you're in here. :3

I made the last MS thread today that wasn't negative or trolling...

...but based on your reply, I'll assume it said something about Apple?

 

[Mashing]

I need proof from the Taiwanese before I will believe it!

 

[Jeels]

Congrats Microsoft, Windows 7 is my favorite OS. :]

 

[MrHicks]

windows 7 <3

 

[samus i am]

If they could only make a good phone OS.

 

[GoutPatrol]

Not as bad as Amazon...down 16% :lol

They must have just turned about free Prime for a year.

 

[flsh]

If they could only make a good phone OS.

So they would have a good phone OS that nobody cares about?

 

[LCfiner]

So they would have a good phone OS that nobody cares about?

let's not discount win phone 7 before it even ships.

yeah, they're damn late but I don't think it's too late in the phone wars to declare them out of the game. let's see how consumer response is to WP7 before we write them off.

 

[Bluth]

let's not discount win phone 7 before it even ships.

yeah, they're damn late but I don't think it's too late in the phone wars to declare them out of the game. let's see how consumer response is to WP7 before we write them off.

It'll be a uphill battle, that's for sure

 

[Flying_Phoenix]

Despite Apple's and Google's stunning growth they're still not at the level of Microsoft. But as I've said in previous threads, Microsoft should really put full force in the mobile market

Spoiler

if it isn't already

before it's too late.

Don't troll in your thread title. What a stupid move. Seriously. I've edited it out so that the thread doesn't become garbage.

I'd like to quote this to say that you are doing an excellent job with your new modding position. Keep doing what you're doing. Stuff like that annoys the hell out of me too.

as a new OSX user, I must say that where it counts (ability to do things as quickly and efficiently as possible with minimal problems), Windows 7 is as good as or better than OSX.

virtually no security issues, no crashes (outside of shit drivers from GPU manufacturers or something), no issues. still need to do the occasional format & reload to keep it fast...but other than that, Windows 7--considering all the hardware (current, future and legacy) it has to work with while retaining good security--it's probably the most technically impressive OS on the planet.

Spoiler

but OSX is great too. just that considering the scope and scale of things Windows 7 needs to deal with that OSX doesn't, it's a great feat

Pretty much. I've used all three of the main OS's (Windows 7, Snow Leopard, and Ubuntu 10) and I can confidently say that on paper Windows 7 is the best for all the features you mentioned. Such huge step up from Vista in terms of security and usability. Like you said Snow Leopard is great too, but since Leopard was so far ahead of Vista I guess Apple didn't see a need to add or change the exterior features of Leopard and focus on a cheap upgrade focusing solely on internal changes. Unfortunately it was right then and there that Microsoft put together an incredible OS. I'd use it more, but it's just not my style and I just love supporting the underdog.

let's not discount win phone 7 before it even ships.

yeah, they're damn late but I don't think it's too late in the phone wars to declare them out of the game. let's see how consumer response is to WP7 before we write them off.

If it isn't something highly revolutionary or at least game changing it's doomed for mediocrity at best. iOS and Android are pretty much Pacmaning their competitors' marketshare.

 

[Walshicus]

So they would have a good phone OS that nobody cares about?

Cynical, much? Lot of interest in WP7 out there.

 

[LCfiner]

It'll be a uphill battle, that's for sure

absolutely.

But I strongly believe that MS does its best work when its behind the competition and needs to catch up. they get extraordinarily complacent when there's no fear of competition.

WP7 doesn't need to sell iPhone 4 numbers at launch to be a success. it just needs to get people considering MS as a viable alternative instead of an industry joke. they can build on that.

As an iPhone user who prefers UI polish over openness, I welcome another strong competitor in the phone space.

 

[flsh]

Cynical, much? Lot of interest in WP7 out there.

Oh really? Because EVERYONE I know that is considering a phone wants an iPhone, thinks android is cool (but wants an iPhone) and doesn't care about anything else.
It might be a fantastic OS, but the people know what they want, and they want an iPhone.
I highly doubt WM7 will make an impact.

 

[dude]

Windows 7 is a very good OS, so I'm glad.

WP 7 is most exciting mobile OS I've seen. It it had multitasking, I could have confused it with the second coming (Well, that and the ability to load applications not from it's market.)

I'm not sure how well it will go (especially with how the Kin went...), but I really hope it can take off - The second generation will probably be so awesome...

 

[scorcho]

the biggest question is whether MS will have the patience with WM7 as they did with the XBox when it first came out, or would they cut and bail on the esoteric UI at the first sign of trouble...

 

[Sean]

Windows Phone 7 is too little, too late.

We saw this happen with Palm already. WebOS got a lot of hype for being a complete OS revamp from scratch, it had a unique user interface, Palm were the underdogs with this being their last chance at competing, this was supposed to put them back in the mobile game, but they had a hard time convincing developers to make apps for it… and it really went nowhere.

Same exact thing is going to happen to Windows Phone 7 IMO.

 

[Gallbaro]

Windows Phone 7 is too little, too late.

We saw this happen with Palm already. WebOS got a lot of hype for being a complete OS revamp from scratch, it had a unique user interface, Palm were the underdogs with this being their last chance at competing, this was supposed to put them back in the mobile game, but they had a hard time convincing developers to make apps for it… and it really went nowhere.

Same exact thing is going to happen to Windows Phone 7 IMO.

There is a difference in that, while MS is in this fighting for the survival of their consumer business, they have much more cash to burn and are proven ala xbox to fight through the pain.

Also I would look for the phone to steal more blackberry customers than you would expect.

 

[CharminUltra]

... for now

 

[teh_pwn]

Microsoft also has one of the lowest P/E in large tech companies. They dominate several markets that aren't at risk to competition for at least 10 years, and these markets consistently provide billions of USD in profit. They're not going anywhere.

As for MS's stock price, it has slowed down. It is a value company. They pay dividends, but they could be higher.

But let's not infer any wisdom from the market consensus of tech companies as it tends to be absurdly wrong throughout history. The promise of cutting edge technology tends to inflate stocks far beyond their value. The .com recession is the best recent example, but similar bubbles existed in the 80s, and even over a 100 years ago with trading companies.

 

[Mudkips]

Oh really? Because EVERYONE I know that is considering a phone wants an iPhone, thinks android is cool (but wants an iPhone) and doesn't care about anything else.
It might be a fantastic OS, but the people know what they want, and they want an iPhone.
I highly doubt WM7 will make an impact.

Business phones tended to be split between Blackberry (terribly buggy and crash prone, I HATES them), Windows Mobile.

Then the iPhone came along, and business types started using it.

Windows Phone 7 isn't a response to the iPhone in the casual market, it's a response to the iPhone taking a chunk out of the business segment.

I hate that they've gone with the widgety interface, but at least Kin is dead, and they seem to have one version of Windows Phone 7 that they're pushing, and have made no noise about Windows Mobile 7 (yes this is exists, and yes it is separate). I think they're keeping it as their fallback if they can't get any traction with Windows Phone 7 in the business segment.

Seeing as how Blackberry and Windows Mobile are the only ones that have full and proper exchange support, remote management, etc., they still have a huge potential advantage over the iPhone in the minds of IT. The problem is the people who use the phones want shiny and fun, not functional and easy for IT.

When the last major release of Windows Mobile came out, it was still pretty commonplace to have people carry two phones - 1 for work and 1 personal. That shit doesn't fly today, especially when people have user-friendly options for forwarding calls and voice mail and email to any device, at any location.

 

[gohepcat]

Oh really? Because EVERYONE I know that is considering a phone wants an iPhone, thinks android is cool (but wants an iPhone) and doesn't care about anything else.
It might be a fantastic OS, but the people know what they want, and they want an iPhone.
I highly doubt WM7 will make an impact.

12 months ago people didn't know what Android was, and now they outsell the consistently iPhone.

From what I've seen of Windows Phone 7 it's outstanding. It's amazingly fast and beautiful looking. It's incredibly late, and that might be it's biggest problem, but this seems far from over.

I can pick up a new android based phone for free with a contract, get a cheaper data plan through Sprint, get a discount through my work with Verizon....These are big factors for most people.

If the iPhone stays higher priced and exclusive to one carrier, it might lose in the end.

 

[cuevas. PhD.]

Kin listed as at least $240 million writeoff in Microsoft earnings report
http://www.engadget.com/2010/07/22/kin-listed-as-at-least-240-million-writeoff-in-microsoft-earnin/

This sucks, not that the phone was great or anything but I can see microsoft taking less risks because of this :\

 

[Vyer]

12 months ago people didn't know what Android was, and now they outsell the consistently iPhone.
.

Which phone outsells the iphone?

MS needs a big (hopefully) marketing push, but I think it will be a while before they get enough handsets to really keep pace.

 

[Gallbaro]

Which phone outsells the iphone?

MS needs a big (hopefully) marketing push, but I think it will be a while before they get enough handsets to really keep pace.

From Google's perspective, they are outselling the iPhone.

 

[Hasphat'sAnts]

Windows Phone 7 is too little, too late.

We saw this happen with Palm already. WebOS got a lot of hype for being a complete OS revamp from scratch, it had a unique user interface, Palm were the underdogs with this being their last chance at competing, this was supposed to put them back in the mobile game, but they had a hard time convincing developers to make apps for it… and it really went nowhere.

Same exact thing is going to happen to Windows Phone 7 IMO.

Microsoft can't leverage their brand name in the consumer space. But as far as their corporate clients are concerned, I think the new Windows Mobile platform is something they'll take seriously.

 

[cartoon_soldier]

And the stock will still go nowhere.

I know. wtf

 

[Burger]

Kin listed as at least $240 million writeoff in Microsoft earnings report
http://www.engadget.com/2010/07/22/kin-listed-as-at-least-240-million-writeoff-in-microsoft-earnin/

This sucks, not that the phone was great or anything but I can see microsoft taking less risks because of this :\

Engadget also commented that when you add the $500m acquisition of Danger, and the reported $250m marketing push, you end up with close to a billion dollar mistake.

 

[bionic77]

Windows Phone 7 is too little, too late.

Its amazing that Ballmer hasn't been fired yet. Not too long ago MS controlled and owned the Smartphone/PDA market and just let it go away (making no effort to improve their OS once they controlled the market). First RIM, then Apple and now Google. They all were able to get something out before MS despite the fact that MS was there first.

While MS has made a lot of good stuff since Gates left they have had zero vision and zero initiative, they just keep reacting with too little, too late.

I really wonder if they can compete on an even playing field. They failed so far in every other market where that was the case (though the Xbox may be the exception to that). They have the talent and the resources, they just need the leadership. Bring Gates out of retirement or get some new blood.

 

[Orlics]

Its amazing that Ballmer hasn't been fired yet. Not too long ago MS controlled and owned the Smartphone/PDA market and just let it go away (making no effort to improve their OS once they controlled the market). First RIM, then Apple and now Google. They all were able to get something out before MS despite the fact that MS was there first.

While MS has made a lot of good stuff since Gates left they have had zero vision and zero initiative, they just keep reacting with too little, too late.

I really wonder if they can compete on an even playing field. They failed so far in every other market where that was the case (though the Xbox may be the exception to that). They have the talent and the resources, they just need the leadership. Bring Gates out of retirement or get some new blood.

Ballmer just has no taste. Everyone at MS probably knew the Kin was going to fail, yet they released it anyway. They should take a cue from Apple and release shit they know people will actually like.

 

[dLMN8R]

Revenue under Ballmer:

Profit under Ballmer:

Ballmer drove Microsoft to double their already massive revenue, and nearly double profits along with it. Say what you will about his ability to drive share price based on perception, and his image, but he definitely knows how to make his company money.

Their share price is hilariously, inexplicably undervalued. No matter what their results are, the share price goes nowhere.


No respect!

Philip Winslow, Credit Suisse: He repeats his Outperform rating. “What more do you want?” he asks rhetorically. “Based on these results, we believe that Microsoft continues to successfully streamline its cost structure, which will allow the company to show significant uprating and EPS leverage as the economy recovers, he enterprise spending environment improves and the company begins to benefit from the overlapping Windows, SQL Server, Xbox Kinect, Halo, Dynamics and Microsoft Office cycles during the second half of 2010.”

Sandeep Aggarwal, Caris & Co.: He repeats his Buy rating, asserting that “the Street continues to under-appreciate the product cycle Microsoft is currently going through.” He contends it isn’t getting much credit for Azure, Office 2010, SharePoint, Windows Server or Kinect. Aggarwal also contends that the competitive threat from the iPad and mobile devices is overblown.

 

[Windu]

Windows Phone 7 is too little, too late.

I doubt it. The smartphone market has a long way to go before there are only a couple dominant platforms. Lots of growth left.

 

[dLMN8R]

Before Android came out, no one ever expected it to be able to gain so much marketshare, such a robust application catalog, and such fantastic, compelling devices in such a short amount of time.

With Microsoft claiming that they'll push Windows Phone 7 as hard as they pushed Windows 7, if not moreso, and with their rumored reaching out to and paying developers to create applications for it, I really don't see why Windows Phone 7 wouldn't be able to do the same thing to Android, as Android did to the iPhone.


Just simply because of the way phone contracts are set up in North America and most other territories, where it's all subsidized by your phone plan, people are always changing phones every 2-3 years because it's so relatively inexpensive to do so. That's one of the reasons why Android was able to grow so sharply, and will probably benefit WP7 as well.

 

[teh_pwn]

Their share price is hilariously, inexplicably undervalued. No matter what their results are, the share price goes nowhere.

I'd say the stock is about 20-30% undervalued. It's just that other tech stocks are so grossly overvalued that it makes MSFT appear grossly undervalued.

I'm not into individual stock selection investing just yet, but so far if I had to pick 2 tech stocks, it would by IBM and Microsoft. Stable businesses, low P/E, pay decent dividends. But I'm going to learn how to read all of the fine print financial literature first and start reading about what these businesses are planning to do long term before I start buying. That and more money.