Microsoft reports revenues up 10%
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Software giant Microsoft has reported robust revenue growth for its fiscal fourth quarter, bucking the gloom enveloping the IT sector.
19 July 2002 Software giant Microsoft has reported robust revenue growth for its fiscal fourth quarter, bucking the gloom enveloping the IT sector.
In the quarter to the end of June 2002, Microsoft delivered revenues of $7.25 billion (€7.14m), up 10% on the same period a year earlier. This helped Microsoft deliver increase revenues to $28.4 billion (€28m) in fiscal 2002. In addition, the company's annual net income increased to $7.8 billion (€7.7bn) from $7.4 billion (€7.3bn) in 2001.
Behind this growth, was a strong performance from Microsoft's desktop software division, which delivered quarterly revenues up 9% to $4.97 billion (€4.9bn). Demand was particularly strong for the professional editions of Windows XP and Windows 2000, said Microsoft chief financial officer John Connors.
The company's enterprise software division was boosted by a 13% increase in sales of Windows Server products.
Analysts have attributed this strong performance at a time of otherwise moribund PC sales to the effect of its 31 July 2002 introduction of Software Assurance, a new licensing system that penalises corporate users who fail to upgrade regularly.
Under Software Assurance, organisations that do not commit to purchasing new copies of Microsoft's software before the end of July will be forced to pay higher licensing fees when the products are eventually released.
However, in contrast to other technology vendors, Microsoft remains bullish about its growth prospects for fiscal 2003. The company forecasts double-digit revenue growth for 2003, which will take Microsoft's revenues up to about $32 billion (€31.6bn).
But this will depend on whether customers buy into Microsoft's .Net web services strategy, which will be underpinned by the next release of its Windows .Net Server, expected later in 2002.
