The Big Issue

It's not all gloom and doom this morning. While Sun never rose in 2002 and saw its revenue. for the six months ended 29th December 2002 fall 5% to $5.66bn, IBM managed to fall nearer 6% all told. Happier news for Microsoft though, as Q2 results for the period ended 31st December Turnover were $16.3bn up 17.5% on the comparative period last year. Net income rose 48% to $5.3bn.



The company attributed the growth to "increased sales of Microsoft Xbox, recognition of unearned revenue from strong multi-year licencing in prior periods, and licencing of Microsoft Windows server and server applications".

All of Microsoft’s seven divisions delivered growth, the highlights include:

Home and entertainment (where Xbox resides) recorded the highest revenue growth of 48% to $1.8bn (but that’s still only 11% of total revenues) and the FT reports that this fell below expectations.

- CE/Mobility (includes pocket PC, Handheld PC) rose 40.9% to $39m (but less than 1% of total revenues).

- Server platforms (which includes SQL) rose 12.9% to $3.4bn, but its share of total turnover actually declined a point to 21%.

Despite Microsoft’s plans to diversify into other areas the desktop still dominates, accounting for 61% of total revenues.

By channel Americas rose 8.9% to $6bn, EMEA was up 33.6% to $3.4bn and Japan and Asia Pac up 17.2% to $1.7bn, OEM rose 19% to $5.2bn.

On the outlook John Connors, CFO, said "while we are very optimistic about the future of the technology sector, we do not expect to see a significant upturn in global IT spending in the short term". The company also declared an annual dividend for the first time and approved a two-for-one share split on Microsoft common stock

Source Ovum Holway.

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