Microsoft profits above analysts' forecasts
27 Oct 2006
Microsoft has reported earnings that topped analyst forecasts with net profit of $3.48 billion (approximately Rs15,827 crore) for the quarter ended 30 September, up from $3.14 billion (approximately Rs14,280 crore) in the same period last year.
The company said that the main growth driver was the strong sales of its server software, such as SQL Server.
Total quarterly sales climbed to $10.8 billion, an increase of 11 per cent from last year.
However analysts say the software giant could have shown stronger earnings had it not delayed the launch of Vistas, which is due to replace Windows.
Microsoft is expected to release its Windows Vista programme before the end of this year instead of August, as earlier stated, and will also put out an upgrade of its Office product. As a result of the delay Vista will only be in the market in January next year.
Microsoft has also cut its earnings forecast for the new quarter, saying that it now expected sales of between $11.8 billion and $12.4 billion. It has given its full-year earnings targets at between $50 billion and $50.9 billion.
