Barney's Blog

Blog archive

Microsoft OK for Now

Our economy is clearly messed up -- and the overseas market is crashing again as I type. The weird thing is that stocks are tanking more based on what's going to happen than what is happening. The real impact of frozen credit will be felt when giant retailers go under and millions lose jobs.

That's why it's not surprising that in this latest quarter, Microsoft had its normal stunning results. Revenue came in just north of $15 billion and profits nearly hit $6 billion, margins any self-respecting capitalist would be proud of. And for the current quarter Microsoft expects things to get even better -- maybe hitting close to $18 billion. That's a lot of Christmas Xboxes.

Windows wasn't the dollar driver. Instead, Office and SQL Server did a lot of the heavy financial lifting.

Still, Microsoft is bracing for a tougher future and will take a hard look at expenses. They can start by yanking those "I'm a PC" commercials! What are you doing to prepare for what could be a brutal economy? Advice welcome at dbarney@redmondmag.com.

Posted by Doug Barney on October 27, 2008 at 11:52 AM