Microsoft Corp, the world?s largest software maker, posted record fourth-quarter revenue after the most successful debut of its flagship operating system. Sales gained 22%, the biggest quarterly increase in more than two years, to $16 billion, the company said. Net income topped analysts? predictions, as did revenue for the division that sells Windows.
Expectations for Microsoft?s results ran high after quarterly reports this month from Intel and Apple blew away analysts? projections. Still, sales at Microsoft?s top three businesses exceeded estimates. The company also said it has sold 175 million copies of Windows 7 since the programme?s October release, the fastest pace for its main operating system. ?It was a big beat,? said Sandeep Aggarwal, an analyst at Caris & Co in San Francisco who recommends buying the stock. ?Street expectations have only gone up in the last two, three weeks.? Revenue in the Windows unit rose 44% to $4.55 billion and business division sales, mostly of Office software, were $5.25 billion.
Ericsson misses estimates as global sales decline
Ericsson AB, the world?s largest maker of wireless networks, missed analysts? estimates for Q2 profit. Shares fell as much as 6.6% after Ericsson said that net income doubled to 1.88 billion kronor ($260 million) from 831 million kronor a year earlier. Analysts had predicted a profit of 3.12 billion kronor. Revenue dropped 8% to 48 billion kronor, missing the 50.8 billion-kronor average estimate of 30 analysts.
Saab?s Q2 profits down on terminated consumer deal
Swedish aerospace and defence group Saab says net profits fell almost 40% in the second quarter, largely due to a terminated customer contract, resulting in a 2010 outlook downgrade. Friday?s report showed a second-quarter net profit of 177 million kronor ($24 million), tumbling from 294 million kronor in the same three months last year. Saab has blamed it on a lost contracts in its civil security unit and lower capacity use.