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. Links 30/1/2015: CERN Adopts 64-bit GNU/Linux, Inkscape 0.91 Released

    Links for the day



  2. Apple- and Microsoft-Friendly Media Continues Attacking Android/Linux

    Some of the latest examples where corporate media (funded and run by large corporation) distorts facts, selectively covers facts, and generally serves to protect the Apple-Microsoft duopolist world view



  3. Qualys Admits That Its Scare Campaign (So-called 'GHOST') Somewhat Baseless

    Even the company that bombarded the media with its "GHOST" nonsense admits that this bug, which was fixed two years ago, does not pose much of a threat



  4. European Unitary Patent and Court System in Trouble

    New resistance to the Unitary Patent amid allegations of misconduct in the European patent authorities



  5. Text of Ruling/Decision Against Željko Topić (Regarding Audi as a Bribe)

    The legal loss of Željko Topić laid bear for the public to see even outside Croatia



  6. Media Coverage of Demonstration Against Jesper Kongstad of the Administrative Council (EPO)

    Last week's EPO demonstration has been covered by Danish media, raising awareness of the "banana republic" state of the EPO



  7. Links 29/1/2015: Android Shipments in 2014 Exceed 1,000,000,000, LibreOffice 4.4 is Out

    Links for the day



  8. Corporate Media, Led Astray by Patent Lawyers, Continues to Distort the Reality of Software Patents Post-Alice

    The press of the rich and the powerful continues its attempt to preserve software patents, despite the US Supreme Court's decision to abolish a lot of them on the basis of abstraction



  9. An Estimated 1,000 EPO Employees-Strong Legion Engulfs Danish Consulate to Protest Jesper Kongstad's (of Administrative Council) Protection of Benoît Battistelli

    A large protest waged by staff of the EPO targets one of the key facilitators of Battistelli's terrifying tyranny



  10. Links 28/1/2015: Ubuntu Touch Windowed Mode, NVIDIA Linux Legacy Drivers Updated

    Links for the day



  11. Breaking: EPO Vice-President Željko Topić Loses Defamation Case in Croatia

    The EPO's notorious Vice-President, whose appointment at the EPO is still raising some alarming questions, has just lost his case in Croatia (one of many cases), motivating us to accelerate coverage about the persona known as Željko Topić



  12. Qualys Starts Self-Promotional FUD Campaign, Naming a Bug That Was Already Fixed 2 Years Ago and Distros Have Covered With Patches

    Responding to the media blitz which paints GNU/Linux as insecure despite the fact that bugs were evidently found and fixed



  13. The Openwashing of Microsoft is Now Threatening to Eliminate the Identity of Free Software

    More openwashing of Microsoft, including in the corporate media, shows just to what great an extent and how quickly the old "Microsoft Open Source" Big Lie grows feet



  14. Links 27/1/2015: Plasma 5.2, Dell Precision With GNU/Linux

    Links for the day



  15. Microsoft's Media Attack on Free Software and GNU/Linux

    Brainwash war is still being waged by Microsoft and its friends to convince people that Windows is universally dominant and that Microsoft is now part of the Free software world



  16. Microsoft Accounting Practices After Fire Again, After Previous Abuses and Book-Cooking

    After the infamous IRS brawl comes another confrontation between Microsoft and the SEC, which is unhappy with Microsoft for seemingly cooking the books again



  17. Links 26/1/2015: Debian 8.0 “Jessie” RC1, Linux Kernel 3.19 RC6

    Links for the day



  18. Links 25/1/2015: Android Wear 5.0, Tizen in Bangladesh

    Links for the day



  19. IRC Proceedings: January 11th, 2015 – January 24th, 2015

    Many IRC logs



  20. Links 24/1/2015: Zenwalk Linux Reviewed, Netrunner 14.1 Released

    Links for the day



  21. The Latest 'Microsoft is Open Source' Propaganda a Parade of Lies

    Microsoft myth makers continue their assault on what is objectively true and try to tell the public that Microsoft is a friend of "Open Source"



  22. Apple -- Like Microsoft -- Not Interested in the Security of Its Operating Systems

    Apple neglected to patch known security flaws in Mac OS X for no less than three months and only did something about that vector of intrusion when the public found out about it



  23. As Battistelli Breaks the Rules and Topić Silences Staff, New European Parliament Petition for Tackling the EPO's Abuses is Needed

    The neglected (by EPO) Article 4a of the European Patent Convention (EPC) and the European Parliament petition/complaint against the EPO's crooked management



  24. Links 23/1/2015: Red Hat on IBM Power, Meizu Leaks With Ubuntu

    Links for the day



  25. Links 23/1/2015: Plasma 5.2, Manjaro 0.9-pre1

    Links for the day



  26. Microsoft is Dying Due to Free Software, Tries to Infect GNU/Linux With .NET and to Infect Moodle in Schools With Microsoft Office and OOXML Lock-in

    'Free' drugs (a proprietary software analogy) the new strategy of Microsoft in its latest battle against Free software, especially in schools where choice is a rarity (if not an impossibility), with the premeditated intention of forming dependency/addiction among young people



  27. Microsoft Symptoms of a Dying Company: More Boosters Depart, Back Doors Revealed, Microsoft's Outlook Cracked

    Bad news for Microsoft shortly before the marketing extravaganza served to cover much of it up



  28. The Collapse of European Patent Office Management Culminates With Resignations

    No blood is spilled, but even the management of the EPO is falling apart as the Director of Internal Communication is said to have just resigned



  29. New LCA Talk: Open Invention Network's Deb Nicholson on Software Patents and Patent Trolls

    Deb Nicholson's LCA talk is now publicly accessible



  30. Links 22/1/2015: GNU/Linux Sysadmin Opportunities, TraceFS Introduced

    Links for the day


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