Microsoft Reports Record Financial Results
Its domestic and overseas legal battles notwithstanding, Microsoft (Redmond, WA; Nasdaq: MSFT) had a record-breaking second quarter for fiscal '98. Revenue of $3.59 billion represent a 34% increase from Q2 '97 revenue. Net income of $1.13 billion compares with Q2 '97 net income of $741 million. European and OEM revenues were up 33% and 40% respectively, more than offsetting the economic weakness in Asia, though this weakness "clouds the outlook for calendar 1998," according to Microsoft CFO Greg Maffei. During the quarter Microsoft released SQL Server Version 6.5 Enterprise Edition, which was quickly supported by industry companies including PC Docs (Burlington, MA), Optika (Colorado Springs, CO), and Unisys (Blue Bell, PA), and announced its plans to enter the handheld PC marketplace with the new Palm PC. Microsoft also expanded agreements with Unisys for Windows NT support and Silicon Graphics (Irvine, CA) to provide extended graphics capabilities. Microsoft also acquired Hotmail, the popular, Web-based free email service.