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More on Microsoft: $900M ($0.07/share) charge taken on Surface RT inventories. FQ4 Windows...

More on Microsoft: $900M ($0.07/share) charge taken on Surface RT inventories. FQ4 Windows division revenue -6% Y/Y adjusted for Win. 8 pre-sales, +6% otherwise (flat and +23% in FQ3). Division OEM revenue -15% adjusted, +1% otherwise. Office division revenue (affected by subscription shift) +2% adjusted for pre-sales, +14% otherwise (+5% and +8% prior). Server & Tools +9% (+11% prior). Online Services +9%, op. loss of $372M (up from FQ3's $262M). Entertainment & Devices (Xbox, Skype, etc.) +8% (+33% prior). Office 365 now on $1.5B+ run rate (up from $1B+ in April). Opex (exc. charges) +9% Y/Y. Unearned revenue balance +12% Y/Y to $22.4B. MSFT -5% AH. (PR)
Comments (14)
  • wigit5
    , contributor
    Comments (4050) | Send Message
     
    Wow this actually looks good when you ignore the Surface RT debacle, maybe good is to strong... perhaps decent is more fitting... but certainly not awful.

     

    Everyone knew RT was a bad idea though except MSFT apparently.
    18 Jul 2013, 04:51 PM Reply Like
  • Matthew Lewis
    , contributor
    Comments (341) | Send Message
     
    No reason to ignore the charges. It's par for the course for Microsoft. The company is a grease fire in the hardware space.
    18 Jul 2013, 04:55 PM Reply Like
  • JIMSK
    , contributor
    Comments (137) | Send Message
     
    where do you think the price will settle aqt ??
    jim
    18 Jul 2013, 04:57 PM Reply Like
  • Chrishunet
    , contributor
    Comments (17) | Send Message
     
    The Gorilla Glue is set at 30... I would expect it to return to where it belongs.
    18 Jul 2013, 05:47 PM Reply Like
  • criticalbear
    , contributor
    Comments (81) | Send Message
     
    the thing is 900 million is hardly anything in the long run. I hope MSFT realizes that their money should be on the surface PRO
    18 Jul 2013, 05:13 PM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2338) | Send Message
     
    critical bear
    Do you work for the government?
    900 million is hardly anything in the long run.

     

    it could run the city of Des Moines, Iowa for over 20 years
    19 Jul 2013, 06:45 PM Reply Like
  • ARG1
    , contributor
    Comments (721) | Send Message
     
    It was no secret that PC is a problem. I am positive about the risks that MSFT is taking everywhere. Tablet, Playstation one and mobil. That said, with risks come mistakes but you need the risk to avoid complacence. Google is down 5% and INTC was down, the winners will be the ones that adapt the most to the new tech environment. The fact that MSFT is changing is positive because MSFT has to change to be relevant for the future. As for price I would say that in the next week or 2 we should see the price settle, around 33 a good entry point.
    18 Jul 2013, 05:16 PM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2338) | Send Message
     
    As I previously said S B seems to be moving the deck chairs and a few went over the side. I see 31 or below. As a share holder this does not make me happy but with rolling covered calls I can live with it.
    18 Jul 2013, 05:36 PM Reply Like
  • 1951Mike
    , contributor
    Comments (18) | Send Message
     
    Yeah... Everyone could see that RT was a bad idea. But Ballmer thought otherwise. Same with Win 8; everyone could see it's problems the minute it was released. But Ballmer could not see that. When a ship the size of MSFT gets lost at sea time after time again it is time to replace the captain. Or does he get to stay at the helm until the ship finally sinks?
    18 Jul 2013, 05:48 PM Reply Like
  • TDOB70
    , contributor
    Comments (25) | Send Message
     
    Lol... When the ship sinks???? They just posted a 26.76b profit for the fully reporting year. Up from 21.76b last year. Seriously What are you guys smoking???? Of course start up initiatives will cost money. Xbox anyone????
    19 Jul 2013, 06:28 AM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2338) | Send Message
     
    tdob70

     

    you need to take out of 2012 profit of 21.76 income tax expense
    to net income of 16.97
    I do not have the 2013 income tax figure yet
    19 Jul 2013, 06:59 AM Reply Like
  • justaminute
    , contributor
    Comments (581) | Send Message
     
    When do they get rid of Ballmer?
    18 Jul 2013, 09:32 PM Reply Like
  • Atmit
    , contributor
    Comments (103) | Send Message
     
    More than anything else, this huge writeoff is indicative of Microsoft's horrendous lack of competence in the areas of Sales & Operations planning and Supply Chain Management. With half-decent S&OP processes and people, there should never be any reason why such a huge hit should have to be taken on account of unsold inventory. This kind of a hit would bankrupt most other companies. Microsoft's enormous software cash cows allow them to be incompetent. But this won't last forever. Sooner or later, they will have to develop some degree of competence, if they hope to compete in the hardware space.
    19 Jul 2013, 08:08 AM Reply Like
  • toraji
    , contributor
    Comments (777) | Send Message
     
    I see it different. Of course 900 million is a HUGE number and RT seems to be dead in the water. I own a RT and A PRO. Love them both but the RT convinced me that the PRO would be the best tablet/hybrid/ultra book/laptop or how ever people call it in the market and It TRULY is. The next version will be a game changer and MS will be on top of HILL because there is just nothing better if the right hardware is in this machine.

     

    MS could not wait longer and had to market these machines as early as possible so they took a hit beforehand, knowing it would come.

     

    NOW... the brand name SURFACE stands bad or good reviews.

     

    Reviewers go all over the place and most of them are trying to find something wrong with it and they succeeded but is it true? No it is not ABSOLUTELY not, see what a very bright guy here on SA says about the RT and the PRO, Michael Blair who is very respected about his opinions he shares on SA loves both of these machines and I totally agree with him.

     

    MS has no problems with their hard and software they have problems with reporters/reviewers that are bashing their products because they want their droid or IOS to succeed but at the end of the day MS products are solid and reliable and there is NO way around that.

     

    I have read so may reviews about the RT and PRO and most of them are bashing even before the product did hit the market but moods of commenters underneath the articles are changing in favor of MS and what I see more and more is that people are complaining about the reviewer/reporter for bashing because they actually are not agreeing with the conclusions. it is really different then a year ago, it really is.

     

    So my 2cents to this conversation is not about a prediction for the stock because I am just beginning with investing and I have SO much to learn. I would not even dare to say anything intelligent about how I see the stock in the future, I only can share what I read.

     

    Microsoft NEEDS to go mobile and they are in many ways, they are late to the game (we all agree on that). They have to invest deeply to play catch up and they do in many ways. Look at the deal they have with Nokia and the phones are AWESOME (even they get so much negative reviews with so many commenters complaining about biased reviews). And the only phone that actually grows in sold units

     

    RT will be in smaller tablets with better hardware for cheaper prices. The ecosystem will allow all things to come together (xbox, wp8,w8)...

     

    I think there is a road map and not going 160 miles per hour

     

    I might bore you all with my point of view but both Microsoft and Nokia are fighting back and need our support more then ever.

     

    Long NOK.. (my first investment) and will be Long MS

     

    best regards
    t
    19 Jul 2013, 07:05 PM Reply Like
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