TOMIGHTY PCWORLD SOFTWARE
TOMIGHTY PCWORLD PC
TOMIGHTY PCWORLD LICENSE

No one should count Microsoft down and out. Keeping a “buy” rating on the stock, they indicate a possible 13% dividend hike in September, and the potential for shareholder activism in the fall (Greenlight Capital’s David Einhorn is a major holder, and has spoken about the company in the past), could provide upside. They expect fiscal 2014 revenue and profit to come in at $82.7 billion and $2.85 per share respectively.

TOMIGHTY PCWORLD PC

UBS did cut its estimates to bake in the negative impact of the PC business and the transition to Ballmer’s new focus. As transactional revenue in Xbox live grow, Microsoft is banking on their new gaming console, the Xbox One, and the gradual growth of Windows phones to cut losses, which halved from a year ago. The entertainment and devices division also saw revenue expansion, with sales up 9% to $1.9 billion. Revenues at online services grew 9% to $804 million, as Bing’s market share continues to grow (it hit 17.3% in June, the company said, at the expense of Yahoo), as the company works to produce a profit there.

Yet they should be reassured by Microsoft’s massive and growing war chest, with cash, cash equivalents, and investments hitting $77 billion, second only to mighty Apple.įurthermore, Microsoft is improving operations in two promising business units. Investors are right to be concerned over the company’s $900 million charge on their Surface tablet product, which hasn’t been able to take off.

TOMIGHTY PCWORLD LICENSE

“This quarter, Microsoft saw businesses invest in the Windows platform with volume licensing revenue growing double-digits, and we estimate that the business PC market returned to modest growth,” management explained.įrom a stock market perspective, the real question facing Microsoft in the aftermath of their fourth quarter miss is whether Steve Ballmer and his team will shine in moving away from the PC, and the perpetual license model, and into the cloud and mobile, subscription based cloud solutions model. Microsoft actually saw a solid 14% revenue gain in their business division, with profit up 18%. The effect of the declining PC market may be overstated, though, particularly if one takes it as the cause of Friday’s massive declines. 'The consumer PC market remains challenged and declined again this quarter,' management said. In their fiscal fourth quarter, Microsoft reported a 6% expansion in Windows division revenues to $4.4 billion, yet operating profit halved to $1.1 billion.

TOMIGHTY PCWORLD SOFTWARE

Being the world’s largest software company, “over 80% of its revenue and nearly all of its profits continue to be derived by its ubiquitous Windows OS, its server business (Windows Server), and the business division (Office),” according to UBS.Īnd indeed that decline in the PC industry is hurting the company’s bottom line.

Gartner data show PC shipments fell for the fifth consecutive quarter in Q2, this time tanking 10.9% to 76 million units. The sell off was sparked by fears over the declines of the PC market. Shares in the maker of Windows had rallied nearly 30% this year, leaving both the broader stock market and the technology sector in the dust. Microsoft’s decline is both a consequence of the changing dynamics of the tech world and the incredible surge in its stock price this year.

Tomighty pcworld