EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

10.26.09

Microsoft Layoffs Rumoured (November 4th) After Bad Results

Posted in Deception, Finance, GNU/Linux, Microsoft, Vista 7, Windows at 8:08 am by Dr. Roy Schestowitz

Fisher ship

Summary: Rusty old ship cannot sustain its crew, based on a blog dominated by anonymous Microsoft employees

BY the admission of Microsoft's CEO, Vista 7 will not be a spectacular success. This admission came well before the negative financial results, which show that Windows revenue is down very sharply. We wrote about this (with references from the press) in:

That last item has some raw numbers to show that “PC unit sales up 1%; Windows revenue down 39%.”

How can this be?

One word: margins.

According to one analyst, it’s bound to get worse. Microsoft seems to agree.

Netbooks, Office likely to keep hurting Microsoft sales, analyst says

[...]

At least one analyst expects the trend to continue, even with the release of a netbook-friendly Windows 7 and a free Web version of Office for consumers.

Netbooks made up about 12% of total Windows shipments in the first quarter, Microsoft general manager for investor relations, Bill Koefoed, said in a conference call after the earnings release. And netbook shipments are likely to keep growing faster than the rest of the market, acknowledged Chief Financial Officer Chris Liddell.

This is a bad time for Microsoft’s CFO, no matter how optimistic he pretends to be (he has to). Microsoft’s CFO quietly dumped a lot of his Microsoft shares back in August and he was not alone. According to the mainstream press:

Microsoft Corp. said Friday that its revenue fell and its net income dropped 18 percent in the past quarter, owing in part to sluggish business spending.

One has to be careful with the press because longtime Microsoft pumpers like Eric Savitz are currently boosting Microsoft using lies; to give just one example (among more) that we found in the past week alone, ahead of the results, Microsoft’s estimates were described as “too high”. This is nonsense. In reality, it’s exactly the opposite and Microsoft is doing it again. In the following new article from Business Insider, which changed its headline from “Microsoft Lowers Q4 Guidance (MSFT)” for whatever reason (now it says “CNBC Blows Microsoft Guidance Cut”), it is clearly shown that Microsoft sets the expectations low so that they can be “beaten” later.

Update I: At about 10:50 ET this morning, CNBC and WSJ’s Digits Blog reported that Microsoft had lowered its REVENUE guidance on its conference call. Not surprisingly, the stock immediately tanked.

As we have already learned, Microsoft was caught committing financial fraud to meet or beat targets [1, 2]. Microsoft paid to settle and the SEC let Microsoft off the hook, just as it did with SCO and Madoff for no good reason. In the next post we will show just how close Microsoft really is to the financial system, but in the mean time, it is worth showing that even the stock exchange decided to lend itself to Microsoft, almost to become some kind of drone for a convicted monopoly abuser. Watch and weep:

Microsoft gets Nasdaq opening bell, in Redmond

[...]

To mark the launch of Windows 7, Nasdaq will set up a remote bell on the Microsoft campus to ceremonially open the market Thursday morning.

Stock markets as cheerleaders for companies, eh? At least it becomes apparent who runs the show. Microsoft may already find classic excuses for bad results. Watch what shallow coverage Microsoft receives in the New York Times, which neglects to understand or to inform readers about Microsoft’s crocodile tears [1, 2]. Typical New York Times [1, 2]. To quote Bill Gates, “It’s easier for our software to compete with Linux when there’s piracy than when there’s not.”

Going back to Business Insider, there is another new article with the headline “Microsoft’s Still Toast”:

After the PC market shrank this year, the argument is that a need to replace worn-out computer kit will return it to strong growth – helped by a desire to upgrade to Windows 7…. Microsoft, though, cautioned that corporate IT budgets are still very tight and likely to grow only slowly. The initial favourable consumer reaction to Windows 7 is helpful but the businesses that provide the bulk of tech spending weigh decisions to upgrade very carefully – particularly when shareholders are pressing them to keep costs under control…

Netbooks are still depressing prices and margins for the PC industry. And Bing’s increased share seems to be coming mainly from Yahoo, whose search function Microsoft has anyway agreed to take over. The familiar problems of an aggressive Google and the shift towards selling software as a service remain. Cost-cutting does not change that…

Daily Finance gives Microsoft a “C” grade.

Microsoft Corp’s (MSFT) earnings announcement today reminds me of a story I heard years ago. A seventh grader steps off the school bus and marches into the house beaming. His mother asks him why he is so happy. He replies: “Great news mom, I got a 70!”

What does this have to do with Microsoft? This morning it reported that its first-quarter net income fell 18 percent to $3.6 billion and sales dropped 14 percent to $12.9 billion. Microsoft responded with all the enthusiasm of that seventh grader, noting, “We are very pleased with our performance this quarter.”

Lies, artificial hype and the decoys of Vista 7 must be the reason for this. And how about those bogus launch parties?

Gizmodo pointed us to this (we think unintentionally) hilarious video in which Microsoft tries to get us to see the benefits of using their new software platform Microsoft 7 by throwing our very own Windows 7 launch party. Hang the streamers, set out the chips, program your iPod — and huddle around the computer!

That’s right. The video, which plays more like public service announcement than an exciting product launch, features four racial-and-age-diverse actors in block colors talking excitedly about how they made Windows 7 “the guest of honor” at their party.

Vista 7′s launch was eventually a bit of a failure and it shows. Microsoft’s stock sank after an irrational initial surge. To quote another financial news site:

Microsoft Corporation first quarter revenues fell 14.2% to $12.92 billion and net income fell 18.3% to $3.57 billion or 40 cents a share.

The headline chosen by Business News American is “Microsoft’s Q1 net profits off 18% despite cost cuts” and this is important because a lot of publications ‘forgot’ to comment on Microsoft’s failed attempts to buck the trend. Too few sites actually remember that Microsoft has slashed many employees and cut costs since one year ago, which did not help much.

At Groklaw, Pamela Jones wrote: “So. They lost money, but managed to pull off a profit by cutting employees, research, marketing, etc. How long can you keep that up, I wonder?

Sub-notebooks and GNU/Linux (both are related) must be harming Microsoft's once-considerable margins. Microsoft has admitted this openly on numerous occasions, without mentioning the “L” word. Here is the coverage from Electronista:

Microsoft today reported its third consecutive decline in quarterly revenue. The company’s total revenue during the summer dropped a sharp 14 percent year-over-year to $12.92 billion and is attributed almost exclusively to the Windows division, whose own revenue fell 38.76 percent to $2.62 billion. It also saw a decline in the overall health of its Business and Online Services groups.

“Microsoft’s Profit [and] Sales Fall” was the headline from the Wall Street Journal (WSJ), which someone later changed to “Microsoft Feeds Hopes for a Recovery.” Did a WSJ editor intervene after the article had been published with negative outlooks for Microsoft?

Rumours have begun to mushroom in mini-Microsoft that there might be more publicly-announced layoffs in November (November 4th, one person says). This comes after a post on the subject — one which was released for other Microsoft employees to discuss while major layoffs quietly carry on.

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Patent Lawyers Move Closer to Battistelli's Rubber-stamping Office While the Appeal Boards Pushed Away as Collective Punishment Which Masks Decline in Patent Quality

    Urgently sending appeal boards away and urgently granting applicants patents without proper examination will be Battistelli's sorrow legacy at the European Patent Office



  2. Software Patents a Dying Breed, But Patent Lawyers in Denial Over it and Notorious Judge Rodney Gilstrap Ignores Alice (Supreme Court)

    A look at what law and practice are saying about software patents, contrasted or contradicted by the patent industry and trolls-friendly courts (which make business out of or together with patent aggressors)



  3. CAFC Meddling in PTAB Affairs; Unified Patents Fights a Good Fight by Invalidating Software Patents

    A look at how the AIA's Patent Trial and Appeal Board is invalidating software patents post-Alice, with or without involvement of patent courts



  4. Early Certainty That Benoît Battistelli is Dangerously Clueless and a Major Risk to the EPO

    The chaos which Team Battistelli is assured to deliver if it doesn't treat scientists like scientists, instead viewing them as a production line with rubber-stamping duties



  5. OIN Makes Claims About “Open Source Innovation”, But It Produces Nothing and Protects Virtually Nobody

    The Open Invention Network (OIN) reports growth, but in practical terms it does little or nothing to help developers of Free/Open Source software



  6. Links 27/7/2016: New CrossOver, Blackmagic for GNU/Linux

    Links for the day



  7. The Death of Software Patents and Microsoft's Coup Against Yahoo! Made the Company Worthless

    A look at what happens to companies whose value is a house of software patents rather than code and a broad base of users/customers



  8. Munich Attack Mentioned by EPO But Not Ansbach

    The EPO does the usual right-wing thing (exploiting disaster/emergency for domestic crackdowns), but some bemoan the omission of the explosion at Ansbach (also in Germany)



  9. Kluwer Thinks People Are Clueless About the Unitary Patent System and Pretends It's Business as Usual

    Flogging the dead UPC horse at times of great uncertainty (enough to bring the UPC to a standstill)



  10. Almost Everything That the Government Accountability Office Says is Applicable to the EPO

    The Government Accountability Office in the United States produces reports which can serve as a timely warning sign to the European Patent Office, where patent quality is rapidly declining in order to meet 'production' goals



  11. Microsoft Says It Loves Linux, But Its Anti-Linux Patent Trolls Are Still Around and Active

    Highlighting just two of the many entities that Microsoft (and partners) use in order to induce additional costs on Free (as in freedom) software



  12. Links 26/7/2016: Microsoft Growing Desperate, Linux 4.8 Visions

    Links for the day



  13. Links 25/7/2016: Linux 4.7 Final, PostgreSQL 9.6 Beta 3

    Links for the day



  14. Leaked: Boards of Appeal Face 'Exile' or 'Extradition' in Haar After Standing up to Battistelli

    A look at some of the latest moves at the European Patent Office (EPO), following Battistelli's successful coup d’état which brought the EPO into a perpetual state of emergency that perpetuates Battistelli's totalitarian powers



  15. The US Government Accountability Office (GAO) Comes Across as Against Software Patents, Relates to the EPO as Well

    Some analysis of the input from the Government Accountability Office (GAO) with focus on the EPO and software patents



  16. In the US, Patent Trolls Engage in Patent Wars and Shakedowns, Whereas in China/Korea Large Android OEMs Sue One Another

    Highlighting some of the differences between the US patent system and other patent systems



  17. Links 24/7/2016: Elive 2.7.1 Beta, New Flatpaks and Snaps

    Links for the day



  18. Links 23/7/2016: Leo Laporte on GNU/Linux, Dolphin Emulator’s Vulkan Completion

    Links for the day



  19. Links 22/7/2016: Wine 1.9.15, KaOS 2016.07 ISO

    Links for the day



  20. Haar Mentioned as Likely Site of Appeal Boards as Their Eradication or Marginalisation Envisioned by UPC Proponent Benoît Battistelli

    Not only the Staff Union of the European Patent Office (SUEPO) is under severe attack and possibly in mortal danger; the increasingly understaffed Boards of Appeal too are coming under attack and may (according to rumours) be sent to Haar, a good distance away from Munich and the airport (half an hour drive), not to mention lack of facilities for visitors from overseas



  21. EPO Attaché Albert Keyack Viewed as Somewhat of a Mole, Reporting From the US Embassy in Brazil Until Shortly Before the Temer Coup

    Public responses to the role played by Albert Keyack on behalf of the United States inside the European [sic] Patent Office



  22. EPO Insiders Explain Why the EPO's Examination Quality Rapidly Declines and Will Get Even Worse Because of Willy Minnoye

    Public comments from anonymous insiders serve to highlight a growing crisis inside the European Patent Office (EPO), where experienced/senior examiners are walking away and leaving an irreplaceable bunch of seats (due to high experience demands)



  23. Patents Roundup: BlackBerry, Huawei, PTAB, GAO, Aggressive Universities With Patents, and Software Patents in Europe

    Various bits and pieces of news regarding patents and their fast-changing nature in the United States nowadays



  24. Glimpse at Patent Systems Across the World: Better Quality Control at the USPTO Post-America Invents Act (2011), Unlike the EPO Post-Battistelli (2010)

    While the EPO reportedly strives to eliminate pendency and appeal windows altogether (rubberstamping being optimal performance as per the yardstick du jour), the USPTO introduces changes that would strengthen the system and shield innovation, not protect the business model of serial litigants



  25. Blockstream Has No Patents, But Pledges Not to Sue Using Patents

    Blockstream says that it comes in peace when it comes to software patents, which triggers speculations about coming Blockchain patent wars



  26. Links 21/7/2016: Ubuntu 16.04.1 LTS, Linux Mint 18 “Sarah” Xfce Beta

    Links for the day



  27. Links 21/7/2016: An Honorary Degree for Alan Cox, Looks Back at DebConf16

    Links for the day



  28. EPO USA: Under Battistelli, the 'European' Patent Office Emulates All the Mistakes of the USPTO

    Conservative Benoît Battistelli is trying to impose on the European Patent Office various truly misguided policies and he viciously attacks anyone or anything that stands in his way, including his formal overseers



  29. Links 19/7/2016: ARM and Opera Buyout

    Links for the day



  30. Large Corporations' Software Patenting Pursuits Carry on in Spite of Patent Trolls That Threaten Small Companies the Most

    With unconvincing excuses such as OIN, large corporations including IBM continue to promote software patents in the United States, even when public officials and USPTO officials work towards ending those


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts