Microsoft has unveiled increased profits for Q4. However, the company still failed to meet analyst’s expectations because of investment losses in the telecommunications sector.
For the quarter ended June 30, Microsoft made profits of $1.53 billion or 28 cents per share. In Q4 2001, the company only posted profits of $65 million or 1 cent a share. Microsoft also generated revenues of $7.25 billion for the quarter. This figure shows a 10% increase from revenues of $6.58 billion a year ago. Microsoft’s financial figures include an after tax charge of $806 million which arose from the company’s investments in AT&T and other telecoms companies. The investments were part of Microsoft’s strategy to roll out software over cable networks.
During a conference call Microsoft CFO John Connors said that sales of Windows XP operating systems and other desktop computer software products remained strong. He went onto say that Microsoft is increasing its sales from corporate customers despite the current fall in technology spending.