Microsoft

New Product Launch Will Re-accelerate Growth

Microsoft (MSFT) reported revenue growth of 6% , but if you include the big jump in deferred revenue, revenue increased 20%, according to the company. Bookings growth was also up over 20%.

Microsoft will be launching the consumer version of Vista in February. As a reminder, Microsoft has also launched a new Office and Exchange Server. This broad product launch is huge for Microsoft.

Chris Liddell, Microsoft’s CFO, said he expects an excellent year. He also cited that hardware sales for the December quarter was strong, another positive data point for the sofware giant.

Going forward, Microsoft expects double digit revenue growth and for earnings per share to exceed revenue growth.

Microsoft’s stock has had a good run anticipating the launch of Vista. However, it appears results are already exceeding most expectations. It appears Microsoft has its growth back and the stock has more to run. Investors have to ride the Vista launch.

January 26, 2007

About Ed Mullane

Ed Mullane has been writing on business and economics for over twenty-five years. He currently writes for dealReporter, a Financial Times Group company. Much of his time is spent covering dealmaking in the technology, media and telecom industries.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *