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Microsoft Money: More Big Profits in the Way?

So far this week, foreign stock markets have tanked, the U.S. markets have continued to be skittish at best, the Federal Reserve has cut interest rates in a Hail Mary-pass-like move to save the economy from recession (which we might already be in) and President Bush has talked up an economic stimulus package of tax rebates.

Times look tough, financially, and they might be getting tougher soon. So you know what that means: As always, Microsoft makes more money. Redmond is due to reveal its financial results on Thursday, and already the press and Wall Street watchers are using phrases like "sharp rise in profits."

Now, as the Reuters story linked explains, part of that "sharp rise" stems from Microsoft's deferral last year of more than $1 billion in revenue. Still, while the rise might not be as sharp as it first appears, it's still a (potential) rise, and a pretty impressive one at that. Hopefully it bodes well for Microsoft partners, too, who should, in theory, benefit from Redmond's success.

Last week, we asked you what you're doing -- if anything -- to prepare for a recession. We'll have your responses in RCPU tomorrow. Since Microsoft won't announce earnings until Thursday, and since we no longer have a regular Friday edition, we'll have to save analysis of Microsoft's earnings for next Tuesday's edition.

There's still time to send us your thoughts on how a recession would affect you. The address, as always, is lpender@rcpmag.com.

Posted by Lee Pender on January 23, 2008 at 11:54 AM


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