Wednesday, October 25, 2006

Microsoft FY07Q1 Results

FY07Q1 Pre-results: Quarterly results time! Stories leading into the quarterly financial results:

What are you interested in hearing more about or having the analysts ask Microsoft to get more direct answers? My shortlist:

  • Dates + Enthusiasm: Vista. Office. Dates. Please Lord Almighty finally tell the world when the software will hit the street.
  • Partners?: McAfee and Symantec are shaking the EC tree. Other partners might wonder when we fix our gaze on their market. Justification on our part is totally detached from the halls of justice. Where are the risks? A few bits from Mr. Ballmer here: 10-25-2006 Microsoft's top exec talks about Vista.
  • Live: how the heck is this coming together? Is it an emerging success or still a swirling particle cloud? How is it adding to the bottom line?
  • Xbox: what are the projected shipments? SeekingAlpha reports that Microsoft To Miss XBox 360 Production Targets By As Much As 25%. I imagine we should hear dates and projected shipments on the HD-DVD unit, too.
  • Zune: how are the projections here? What's the future Zune feature-set and ecosystem looking like?
  • Billions and Billions of Dollars: what's the plan for the warchest? More buy backs?

Post-results: nice?

Coverage at this point:

  • MSFTextrememakeover Q1 Earnings - "Phew! No huge surprises. The stronger EPS result mentioned above, seems to have been due to shifting some planned marketing expenses to Q2 and beyond."
  • Microsoft Monitor Microsoft Fiscal 2007, Q1 Results - always a great summary from Mr. Wilcox. On MBD: "My expectation is that most businesses planning to get Office 2007 made that decision when renewing licensing contracts earlier this year. I'm quite bearish on deployments of the new productivity suite."
  • Microsoft profit rises, online group posts loss from Mr. Todd Bishop. Ooo, that ends with a 10-Q quote that's a red flag being waved in-front of my lean-and-mean-bull-ringed nose: "OSB operating income decreased for the three months ended September 30, 2006 [...] Headcount-related costs increased 43%, reflecting both an increase in salaries and benefits for existing headcount and a 40% increase in headcount." Yes, please, throwing more bodies and more money at the catch-up effort is suuuure to succeed.
  • Xbox helps Microsoft profits surge The Daily Telegraph - wha? Xbox might help revenue to surge, but it certainly isn't helping our profits to surge, unless we're rolling into that some heavy profits from periphery attachment. On that note:
  • Gamerscore Blog Quarterly Financial Report - John Porcaro goes into greater financial depth around the Xbox 360.
  • Microsoft Earnings Rise, Beating Views Financial News - Yahoo! Finance - has probably the most representative quote of the Q1 review: '"It's not a bad quarter, not a bad outlook,"' by Alan Davis with D.A. Davidson.

Not bad. Well, some of it is super-fantastic again thanks to SQL Server, Windows Server, and VS (good job on all that SP1 work, too!). Nothing really stuck in my mind from the conference call. Good numbers, a little lumpy, sounds like we're being pretty conservative regarding if things are going to go well or not for the 360, Vista, and Office. And of course, no firm dates for Vista or Office but at least we affirmed corporate availability for November and consumer availability come January. 2007.

Sorry Building 9 countdown clock! You've got to reach zero and then we'll let 'er rip.

Updated: added post results material.

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