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From the News Desk
Thursday, 31. August 2006
Microsoft Q2 Net Falls; Sets Share Buyback, 2007 Outlook
Microsoft has reported lower net profit of USD 2.83 billion, or 28 cents a share, a fall from USD 3.7 billion, or 34 cents a share a year-ago. The company’s net income for the quarter included a USD 351 million legal charge related to a recent fine from the European Union. Excluding the fine the company earned 31 cents per share.
Revenue for the quarter rose 16 percent to USD 11.8 billion. Excluding the EU fine analysts, on average, had forecast Microsoft to report a profit of 30 cents per share on revenue of USD 11.6 billion, according to Reuters Estimates.
The company also announced plans to buy back as much as USD 40 billion of its stock. It said it would buy back USD 20 billion in a tender offer next month, and up to USD 20 billion more through 2011.
For the current fiscal year, Microsoft expects to earn between USD 1.43 and USD 1.47 a share, compared with its previous forecast of USD 1.36 to USD 1.41 per share. For fiscal 2007, the company forecast revenue between USD 49.7 billion and USD 50.7 billion.
For the quarter ending September 30, the company expects operating income in the range of USD 4.0 billion to USD 4.2 billion, and earnings per share of 30 cents to 32 cents a share on revenue in the range of USD 10.6 billion to USD 10.8 billion.
Revenue for the quarter rose 16 percent to USD 11.8 billion. Excluding the EU fine analysts, on average, had forecast Microsoft to report a profit of 30 cents per share on revenue of USD 11.6 billion, according to Reuters Estimates.
The company also announced plans to buy back as much as USD 40 billion of its stock. It said it would buy back USD 20 billion in a tender offer next month, and up to USD 20 billion more through 2011.
For the current fiscal year, Microsoft expects to earn between USD 1.43 and USD 1.47 a share, compared with its previous forecast of USD 1.36 to USD 1.41 per share. For fiscal 2007, the company forecast revenue between USD 49.7 billion and USD 50.7 billion.
For the quarter ending September 30, the company expects operating income in the range of USD 4.0 billion to USD 4.2 billion, and earnings per share of 30 cents to 32 cents a share on revenue in the range of USD 10.6 billion to USD 10.8 billion.
