Microsoft earnings meet expectation

Microsoft reported on Thursday that its quarterly sales increased a modest 5 per cent, somewhat below Wall Street8217;s expectations, point...

Written by STEVE LOHR
April 30, 2005 12:00 AM IST

1 min read

Microsoft reported on Thursday that its quarterly sales increased a modest 5 per cent, somewhat below Wall Street8217;s expectations, pointing to the challenge the company faces as growth slows in its big desktop software business.

But Microsoft8217;s profits met analysts8217; expectations, and the company8217;s forecast for sales and earnings in its 2006 fiscal year, beginning in July, was higher than most analysts8217; previous estimates. In fiscal 2006, Microsoft said it expected its revenues to grow 9 per cent to 11 per cent, in the range of 43.3 billion to 44.1 billion.

Scott Di Valerio, Microsoft8217;s controller, said the company turned in a 8216;8216;good quarter8217;8217; given the uneven trend in corporate spending on IT in the first three months of 2005. Its outlook for the coming year, Di Valerio said, represents 8216;8216;robust growth, and we8217;re confident.8217;8217;