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Did Microsoft Have A Good Quarter Without Deferrals?

Microsoft seems to have announced a good quarter, and certainly the market liked it (the stock is up 4.63% this morning), but given that it reflected $1.1 billion in deferred revenue, was it really that good? Todd Bishop ran a chart yesterday showing the Client Division over the last few years, before the new results. I’ve updated it (with a bit of poor Photoshopping:

deferred-revenue.png

The last figure in each line is the new one, added by me. Also, I’ve added two red lines, showing an estimated idea of revenue (top line) and profits (bottom line) if you removed the $1.1 billion in deferred revenue. Microsoft still turns out better revenue, but considerably less dramatic. Joe Wilcox has some more stats on the deferrals (more specific than my chart alterations), showing that Microsoft’s growth without it is 17%, not 32%, more typical for the company.

April 27th, 2007 Posted by | Corporate, General | no comments



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