Microsoft Posts Smaller 2Q Earnings, Sales Rise 18 Percent


Microsoft Corp. Thursday posted a smaller quarterly profit -- the result of legal expenses and a delay in the sale of its stake in online travel firm Expedia Inc. -- and met the low end of its own guidance as the software giant saw strong sales of its new Windows XP operating system and enterprise software.

For its second fiscal quarter ended Dec. 31, Microsoft posted a net profit, including a charge of $660 million in expenses from consumer class action suits, of $2.28 billion, or 41 cents a share, compared with $2.62 billion, or 47 cents a share a year earlier.

Excluding the legal expenses, which amounted to 8 cents per share, Microsoft said its operating profit was $2.84 billion.

Revenues were $7.74 billion, up 18 percent from $6.5 billion a year earlier, and surpassing the company's official guidance of $7.1 billion to $7.3 billion.

Copyright 2000 Reuters Limited. All rights reserved.

Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Reuters shall be not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.