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MacNN News

http://www.macnn.com/articles/01/07/11/tech:.microsoft/

Tech: Microsoft loses $2.6B on investments

updated 07:20 pm EDT, Wed July 11, 2001

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Evening tech news: Microsoft has announced that its fourth quarter earnings will be reduced from an expected 42 cents per share to 1 cent per share due to a $2.6 billion loss in investments; Yahoo! has reported second quarter pro forma net income of $8.7 million, or 1 cent per share, narrowly beating analysts' prediction of the company breaking even for the quarter; Motorola has posted a second quarter loss of $232 million on revenues of $7.5 billion, compared with a loss of $551 million on revenues of $9.3 billion in the year-ago quarter; and Microsoft has announced that it will allow PC manufacturers to remove Internet Explorer icons from the desktop and Start menu of new PCs.

by MacNN Staff

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07/11, 07:37pm | report spam | close Reply | delete
Isn't MS nice?

Sure, now that Netscape is all but dead, MS finally will give PC makers a choice; when there is no choice left.

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07/11, 07:56pm | report spam | close Reply | delete
in xploder bleh!

luckily we on the mac have a few choices like mozilla icab opera and the new netscape aint bad but eh...

too bad motorola is takin it up the wazoo. cant wait till apple takes the chip development from them. hope they run with it and crank us some speed for once...

berserkintosh@yahoo.com

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07/11, 08:02pm | report spam | close Reply | delete
what about ?

What about giving PC manufacturers the choice of NOT installing Windows by default? hum ?

Windows is a virus and XP is the devil

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07/11, 08:46pm | report spam | close Reply | delete
Beleaguered Microsoft

Beleaguered Dell, Beleaguered Compaq.
Douchebags.

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07/11, 09:27pm | report spam | close Reply | delete
who cares cuz...

All your icons are belong to us.

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07/11, 09:46pm | report spam | close Reply | delete
Wait a minute...

Let me get this straight. The street was expecting 42 cents a share, but instead MSFT is reporting 1 cent, which is due to a 2.6 billion dollar loss.

Then I see that "shares of MSFT were up $3.90, or 5.9 percent, in after hours trading."

WHAAATTTT??? I just don't understand.

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07/11, 09:52pm | report spam | close Reply | delete
re: who cares cuz.

Not to nitpick, but shouldn't that be,
"All your icon are belong to us (singular 'icon')?"
After all wasn't the original,
"All your base are belong to us?"

If you're going to give a hackneyed variation of the hackneyed original, shouldn't you try to preserve the bad translation with its bad grammar?

Not that I care really. Just wish thing would die off, much like 'where's the beef?" and 'help, I've fallen and I can't get up." They all die eventually, the sooner the better with 'all your base', et al.

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07/11, 10:10pm | report spam | close Reply | delete
re: wait a minute

You've got every right to be confused, MacNN offered a real hatchet job. Follow that link to the press release, you'll find:
MS said they're gonna make 48 cents/share *pro forma*, excluding charges, writeoffs, etc. That beats the consensus of 42 cents/share, which is also offered on a pro forma basis. That's why the stock's way up after hours.
Including the charge, they'll make 1 cent/share, but that's not *pro forma*.

MacNN failed to point out that MS was going to beat expectations on a pro forma basis, which is what a lot of people look at first.

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07/11, 11:47pm | report spam | close Reply | delete
????

"All your icons are belong to us"

Do you want me to send you all my icons one-by-one in separate emails.

Could you, please , provide us (post it) your email and I promise to do that

Blody Microsoft ...........#@� #$*

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07/11, 11:51pm | report spam | close Reply | delete
Wall Street bozos

Microsoft announced it was bankrupt today and there stock is up $6.00 a share. Maybe Microsoft isn't real. It's completely made up like some bizarre Dilbert cartoon.

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07/12, 12:11am | report spam | close Reply | delete
Re: Wall Street bozos

Huh? MS expects revenue of $6.5 - $6.6 billion; subtract the $2.6 billion loss; you're left with $3.9 - $4 billion. Taking into account 4.36 billion shares, you get 1 cent/share when you round off. If $3.9-$4 billion counts as bankrupcy, I want in.

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07/12, 12:54am | report spam | close Reply | delete
It's a frickin' windoze

... world!!

I sum timez gets tired ov Microsoft can't lose.

Even though Microsoft should be riding high with Office XP/Windoze 2000 new products, it loozes money and they STILL don't hurt? Wouldn't a shareholder drop them from their portfolio?

I just don't understand this freakin world.

Oh yea, Apple stock will probably plumet as OSX.1 won't ship until 3 weeks after macworld, even though they'll introduce some new smokin' hardware, etc.

Go with Linux, at least you don't have to follow the stock market as closely!!! ;-]

/tc

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07/12, 01:17am | report spam | close Reply | delete
Re: It's a frickin' win

Go with Linux, at least you don't have to follow the stock market as closely!!! ;-]

Like h*** you don't! Have you taken a look at VA, Caldera, or Red Hat's prices lately? Then compare them to when they IPO'd. (;

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07/12, 02:22am | report spam | close Reply | delete
Hmmm...

Mozilla is actually quite awesome...we're lucky to have some choices away from Explorer, which hasn't updated in years. And i ain't no friggin mozilla contributor!

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07/12, 02:23am | report spam | close Reply | delete
What irks me ...

... is that the business world will just shrug this off. "$2.6 billion loss? No big deal, it's the market, blah blah blah."

Let Apple miss expections (or even MEET them ... it usually far exceeds them) and Wall Street will start the Death Watch on Apple again.

Attention investors: MS IS STUMBLING BADLY. WAKE UP.

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07/12, 02:26am | report spam | close Reply | delete
Why is MS being so nice?

all of a sudden? 19 state attorneys general, that's why. They thought they won that appeal, but reality has set in. They lost, and they are likely to get punished, unless "token" moves like this one convince the Bush chickenshit justice dept to slap their wrists and settle. Which I bet they'll do. They're pussies, and they're completely bought off.

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07/12, 02:28am | report spam | close Reply | delete
Re: It's a frickin'

"Even though Microsoft should be riding high with Office XP/Windoze 2000 new products, it loozes money and they STILL don't hurt? Wouldn't a shareholder drop them from their portfolio?"

That big fast loss was on investments, a one time charge. I wouldn't be surprised if Apple has some too. Have you checked out those shares of Inktomi lately? Adobe mentioned some losses on their earnings call, and so did some other companies you probably haven't heard of. Big businesses (like investors) don't keep all their money in the bank -- losses happen.

As for dropping MSFT from your portfolio, I'd hold if I owned it. Worries about fundamentals seem abated. The XP c*** is supposed to boost revenue, at least that's what the people are saying. Ride the enthusiam going into release (and let those who think it's a tech safe haven bid up the shares), ditch if WinXP looks like it's a bust. I wouldn't buy MSFT at current levels, better values, better risk/reward opportunities out there.

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07/12, 02:47am | report spam | close Reply | delete
I wouldn't buy MS shares

The Xbox is going to lose a ton of money for the first couple of years, and I think the public reaction to XP's release will pretty much be "So what, Win98 is good enough."

Yeah, you can go on and on about how much XP is different and better, but PC users have heard that c*** so many times before (like with Win2k and ME) and they just tune it out now.

MS isn't going to be as profitable as it used to be, so its shares will stagnate or drop long-term. Look elsewhere for buys.

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07/12, 02:51am | report spam | close Reply | delete
MS shares went up because

...with the 'more freedom for PC makers' announcement today, it looked to investors like MS was FINALLY going to wise up and try to put its legal woes behind it.

The $2.6 billion dollar loss got overshadowed by that, but when it sinks in, MS shares will stall.

Btw, it was very smart how Bill made the compromise gesture to PC makers announcement at the same time as the big loss announcement. Clever boy, that Billy Bob.

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07/12, 02:54am | report spam | close Reply | delete
Re: What irks me...

If Apple misses pro forma expectations, yeah stocks gonna tank and will hear the chorus of naysayers. But have you read the stuff coming about the PC box-makers, people are trying to figure out whose gonna drop out as a result of Dell's slash and conquer strategy.

The street's gonna shrug of Apple's investments losses (if they have them) as long as they beat estimates and don't warn (badly) going forward. Investment losses are rather common from what I've seen in the small batch of earnings so far for this quarter.

If today's after-market action is any indication (tech shares were flying not just MS), vast majority was expecting putrid earnings from the tech sector, and bailing or taking a wait-and-see approach. MSFT's upside pre-announcement combined by the beating of estimates by Yahoo!, Motorola, Sonus Networks, Redback Networks, created a buying frenzy.

Apple's shares have pretty much been moving sideways for awhile. I suspect there's a wait-and-see approach too. True they smoked earnings last quarter, but that was on the heels of a warning (and even a miss of revised estimates if memory serves) the quarter before. General investing rule-of-thumb: one quarter does not a turn-around make. Street wants confirmation that it's bona fide before diving back in. That's why, there could be some serious upside if they don't disappoint.

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07/12, 09:44am | report spam | close Reply | delete
Re: Wall Street bozos

Huh?????

It was a sarcastic joke, aimed at how reports of earnings are percieved differently on Wall Street.

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Tech: Microsoft loses $2.6B on investments

updated 07:20 pm EDT, Wed July 11, 2001

Isn't MS nice?

in xploder bleh!

what about ?

Beleaguered Microsoft

who cares cuz...

Wait a minute...

re: who cares cuz.

re: wait a minute

????

Wall Street bozos

Re: Wall Street bozos

It's a frickin' windoze

Re: It's a frickin' win

Hmmm...

What irks me ...

Why is MS being so nice?

Re: It's a frickin'

I wouldn't buy MS shares

MS shares went up because

Re: What irks me...

Re: Wall Street bozos

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Tech: Microsoft loses $2.6B on investments

updated 07:20 pm EDT, Wed July 11, 2001

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Isn't MS nice?

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who cares cuz...

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re: who cares cuz.

re: wait a minute

????

Wall Street bozos

Re: Wall Street bozos

It's a frickin' windoze

Re: It's a frickin' win

Hmmm...

What irks me ...

Why is MS being so nice?

Re: It's a frickin'

I wouldn't buy MS shares

MS shares went up because

Re: What irks me...

Re: Wall Street bozos

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