Microsoft Profit Falls

[pknz]

...in New Zealand. I'm not sure how many countries can boast this, maybe lots can, but it sounds good. Woo, down with M$.
stuff.co.nz

Originally Posted by stuff.co.nz

Microsoft NZ's profit falls again
06 February 2006

By TOM PULLAR-STRECKER

Microsoft New Zealand reported its second straight year of falling revenues and profits as it failed to grow its business sufficiently to offset the impact of the higher Kiwi dollar.

Revenues for the year to July fell 8.5 per cent to $48.9 million following a 1 per cent drop the previous year.

Microsoft New Zealand's profit was reined back to $4.2 million from $7.1 million the previous year.

It paid a reduced dividend of $2.9 million to its US parent, down from $3.5 million.

The total value of Microsoft software sold in New Zealand is far greater than Microsoft New Zealand's revenues as the subsidiary is structured as a sales and marketing operation that receives only a commission on local software sales.

Managing director Ross Peat says overall sales revenues attributed to New Zealand are still growing when "oem" software installed on PCs that are assembled outside the country and then shipped to New Zealand is taken into account.

This revenue is booked offshore but is "part of the consolidated view we take of New Zealand", he says.

"Given that view, we feel confident about our business here and growth opportunities."

The subsidiary is growing its headcount of 150 staff and contractors by about 10 per cent a year and will move into larger premises in Auckland's Viaduct Basin in August, he says.

"Our marketing investments are continuing to grow and that is one reason why profitability gets a little challenged at times."

Recent spending includes producing Maori language versions of Microsoft Office and Windows XP and a $500,000 investment in promoting locally-developed healthcare applications in conjunction with New Zealand's Health IT Cluster.

The higher Kiwi dollar means the price of Microsoft software billed in US dollars has come down, Mr Peat says. "That is good news for New Zealand customers."

Mr Peat says Microsoft continues to view New Zealand as an "early adopter market", pointing in particular to strong take-up of Sequel Server 2005.

He says the subsidiary is gearing up for the release of Vista and version 12 of Microsoft Office during the 2007 financial year by expanding its office premises in Auckland.

"It's been a while since we've had a Windows release and we are really excited about what that will mean for the business."

[Stella]

However, ms profits increased world wide.

Fear not, microsoft aren't going bankrupt any time soon!

Originally Posted by pknz

...in New Zealand. I'm not sure how many countries can boast this, maybe lots can, but it sounds good. Woo, down with M$.
stuff.co.nz

[dmw007]

Good to see M$'s profits going south in some areas.

[gammamonk]

My good friend just got a job at Microsoft. He's waaaay more Mac fanboy than I am, so it's great. He doesn't bring his powerbook to work, because people you'd get looks. He never even owned a PC til I gave him an old one a few years back.

[Dr. Dastardly]

Originally Posted by gammamonk

My good friend just got a job at Microsoft. He's waaaay more Mac fanboy than I am, so it's great. He doesn't bring his powerbook to work, because people you'd get looks. He never even owned a PC til I gave him an old one a few years back.

Working for the Vista team I'm guessing.