Friday, April 27, 2007

Vista Paysoff for Microsoft, Should you buy into it?

Micrcosoft posted a net profit of $4.93 billion, versus a profit of $2.98 billion, in the year-ago period. Revenue rose 32% to $14.4 billion. After the company reported the news the stock jumped 11 percent in after hours trading to 29.10.

"The strength of Vista is really driving this and it matches up with our model. We anticipate Vista really begins to roll out in enterprise by the end of the calendar 2007," said Fort Pitt Capital Group Analyst Kim Caughey. "We'll see meaningful uptake by businesses and Microsoft should see revenues accelerate accordingly."

Microsoft expects Vista and Office 2007, the latest versions of its two flagship products, to underpin earnings growth over the next few years. After several delays, Microsoft released both to consumers in January.

1 Comment:

gammarama.co.uk said...

Microsoft are starting to phase out XP licences (OECM) for computer manufacturers, so they have little option but to pre-install vista - so it is going to be popular, despite some peoples protests.

It's a win-win for microsoft and computer manufacturers/distributors. Vista is more bulky and needs a better spec computer to run on etc.