News
Microsoft 4Q Profit Falls on Legal, R&D Expenses
Microsoft Corp. said Thursday that fiscal fourth quarter earnings fell nearly
24 percent in part because of a one-time legal charge but beat Wall Street estimates.
For the three months ended June 30, the software maker reported earnings of
$2.83 billion, or 28 cents per share, compared with $3.7 billion, or 34 cents
per share in the same period last year.
Revenue for the quarter was $11.8 billion, a 16 percent increase over $10.16
billion in the same period a year earlier.
The results included one-time legal charges of 3 cents per share. In the year-earlier
period, Microsoft had legal expenses of 5 cents per share plus a tax benefits
of 9 cents per share.
Without the charge, Redmond-based Microsoft would have earned 31 cents per
share in the most recent quarter.
Analysts polled by Thomson First Call were expecting earnings for the three-month
period of 30 cents per share on revenue of $11.63 billion.
Those expectations were reduced after Microsoft said in April that it expected
earnings for the fiscal fourth quarter and 2007 fiscal year to be lower than
many had previously expected. The company blamed the change on a decision to
significantly boost research and development spending in areas where it is not
dominant.
Microsoft shares fell 55 cents or 2.4 percent to close at $22.85 Thursday on
the Nasdaq Stock Market ahead of the income report. In after-hours trading,
the stock gained an additional 6.1 percent, or $1.39.