Net income at Microsoft rises in third quarter

Microsoft yesterday reported quarterly earnings per share of 50 cents, a 25 per cent increase over the 40 cents earned in the…

Microsoft yesterday reported quarterly earnings per share of 50 cents, a 25 per cent increase over the 40 cents earned in the year-earlier period and two cents better than market predictions.

Net income came to $1.34 billion in the third quarter, which ended March 31st, up from $1.042. Sales rose 18 per cent to $3.77 billion from $3.21 billion in third quarter 1997.

However, Mr Gregory Maffei, chief financial officer, said it "is critical to note that our growth has slowed for each of the last four quarters, and we are likely to experience slower growth for the balance of calendar 1998".

While "business fundamentals continued strong across most geographies, especially North America," added executive vice president Mr Steven Ballmer, "we remain concerned about our business in the Far East, although there is some evidence that the business there is not getting weaker".

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Microsoft recalled in a statement that in the last three months it had announced new or enhanced alliances with Amdahl, Digital Equipment, NCR, and Wang to offer new products and services.

Also during the quarter Microsoft and Sony Corporation unveiled plans to begin collaboration on a convergence between the personal computer and consumer audio-visual electronics platforms. The companies plan to cross-license key technologies, including Microsoft's Windows CE operating system and Sony's Home Networking Module.