Microsoft Corp. reported revenue of US$11.8 billion for its fourth quarter, up 16 percent from the same period last year and above Wall Street's expectations. Net income for the quarter, which ended June 30, fell 24 percent from the year-earlier level to $2.83 billion. However, excluding legal charges, the software vendor topped the forecasts of financial analysts on operating income in addition to revenue.
Dell to fall short On profits and sales
Dell Inc. warned that profits for its second quarter, which ends this month, are likely to be about one-third lower than expected because of pricing pressures. Dell also said it will fall short of its revenue target for the quarter, but by a smaller percentage. Revenue is expected to total about $14 billion, compared with earlier forecasts of $14.2 billion. Dell, which had a weaker-than-expected first quarter, will report the second-quarter numbers on Aug. 17.
IBM posts higher income in quarter
Despite problems in its server and services units, IBM reported a $2 billion profit for the second quarter, up from $1.9 billion in the same period a year ago. Revenue fell 2 percent from last year's level to $21.9 billion. IBM said that some server orders couldn't be fulfilled and that contracts for short-term services were lower than expected. But the company's software, microelectronics and mainframe businesses all had strong performances.
US sales fuel increases at SAP
SAP AG reported a 43 percent year-to-year increase in net income for the second quarter, with software license revenue increasing 8 percent largely because of higher sales in the U.S. Revenue for the second quarter totaled '2.2 billion ($2.8 billion U.S.), up 9 percent from last year's level.
Microsoft releases new build of Vista
Microsoft Corp. has released another interim build of Windows Vista to about 500,000 beta testers and other early users in preparation for the arrival of Release Candidate 1, which is due Aug. 31. Build 5472 reduces the number of prompts and dialogues involved in setting up and controlling user accounts, and it also optimizes Windows Media Center start-up and shutdown routines, according to Microsoft.
Intel's profits fall on soft chip sales
Intel Corp. posted a profit of $885 million for the second quarter, less than half of the $2 billion it earned in the same period last year. Revenue plummeted from $9.2 billion a year ago to $8 billion, Intel said, citing factors such as decreases in microprocessor shipments and pricing, as well as a loss of market share to rival Advanced Micro Devices Inc. AMD reported big increases in revenue and profits for the second quarter, but it fell short of sales goals because of soft microprocessor demand.
SAS to close two training facilities
SAS Institute Inc. confirmed that it plans to close two regional training centers in September, a move that follows the recent elimination of about 170 sales and marketing positions. However, the Cary, N.C.-based vendor of business intelligence tools described the cutbacks as "a reallocation of resources" and said it expects to increase its overall head count this year. SAS now has about 10,000 employees.
Short takes
Oracle Corp. issued 65 software patches as part of its quarterly security update. ... Brad Smith, Microsoft's general counsel, said the company will follow the principles of its antitrust settlement with the U.S. government beyond the expiration of the deal late next year.