MS scrip slid, Vista sales may miss estimates
Shares of Microsoft fell after Chief Executive Officer Steve Ballmer signaled sales of the new Windows Vista programmes are unlikely to meet some analysts' highest estimates.
By Agencies |
SEATTLE: Shares of Microsoft fell after Chief Executive Officer Steve Ballmer signaled sales of the new Windows Vista programmes are unlikely to meet some analysts' highest estimates.
"Some of the Windows revenue forecasts I've seen are overly aggressive," Ballmer told analysts in New York. "You shouldn't think of a huge surge in fiscal year '08 relative to '07. There's a few that think we are going to do so much better than PC growth."
The stock fell 1.6 per cent at open yesterday. Investors expect Vista to propel sales at the world's biggest software maker for the next 18 months.
Microsoft shares fell 46 cents to $29 in early trading on the Nasdaq from a close of $29.46 on Friday. They have gained 9.6 per cent in the past year.
Vista marks Microsoft's first new PC operating system in five years. Ballmer said many corporate customers have already paid for upgrades through multiyear licenses, and there will be more consumer upgrades in the current year than in 2008.
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Microsoft spent $450 million to release Vista and Office 2007, and that won't be needed next year, letting the company spend more on Web efforts without boosting overall expenses, analysts said.Download
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