today announced its first quarter earnings for the period ending Sept. 30, 2001. The company reported US$6.13 billion for the quarter, a six percent increase over the same quarter last year. Operating income increased from $2.78 billion to $2.90 billion for the same quarter year over year, as well.
The news wasn’t all good, however — Microsoft saw $1.2 billion in investment losses for the quarter, and its earnings didn’t beat Wall Street’s expectations. Analysts were expecting Microsoft’s net profits to hit between 38 and 42 cents per share, and the company didn’t even come close — it came in at 23 cents per share. The investment loss erased 20 cents per share from the company’s earnings.
Microsoft also tried to temper analysts’ expectations for its current period. The company offered some revised guidance for the second quarter, and said it expects earnings to be around $7.1 billion to $7.3 billion, or 49 to 50 cents per share — a penny lower than what analysts are expecting.
Microsoft CFO John Connors said that demand was particularly high for Windows 2000 and .NET Enterprise Server products. He also had some cautious words for the company’s forthcoming products. “While we are looking forward to the upcoming launches of Windows XP, Xbox and MSN 7, we also recognize that this is a period of unprecedented global uncertainty that could have an impact on the economy and our business.”
Microsoft highlighted two particular events that stand to grab headlines and mindshare for the company. Next week, Microsoft is set to launch Windows XP, the next generation of its personal computer operating system software, and it’s backing the launch with events in more than 60 cities. Then on November 15, Microsoft is launching Xbox, its own game console and the company’s first foray into the video game market.