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. Publicly-Available Information About the Meeting of the EPO's Administrative Council

    The EPO "crisis" -- as Board 28 called it -- lingers on because no substantial steps were taken towards Battistelli's removal from Office for his violation of Office rules (his own rules) among other laws that Eponia perceives itself as exempt from



  2. Battistelli's Last Moves Are Desperate Attempts to Crush the Messenger (SUEPO), Which Will Almost Certainly Backfire on (if Not Fire) Battistelli

    By implicitly declaring a war on those who speak truth to power or those who are associated with perceived truth-tellers, Battistelli reinforces the perception that he is protecting the bad people at all cost (even his very own career)



  3. EPO Staff Representative Jesus Areso Explains the Crisis to the Administrative Council

    An intervention by an EPO Central Staff Committee (CSC) member who is under gag orders from Battistelli's regime and cannot speak about his case, which apparently involves truly severe disciplinary actions for merely helping or contributing to a staff survey (not controlled by and paid for by Battistelli)



  4. Shadows of Alleged Criminality Over the European Patent Office (EPO)

    Cases against Željko Topić, a Vice-President at the European Patent Office, are moving forward in Croatia, where he still faces many criminal charges



  5. You Know That UPC is Quite Likely Dead (at Least in the UK) When Even Baroness Neville-Rolfe Dodges the Question (Updated)

    The UPC appears to be a dead end, much like Battistelli's career, not only in the UK but in Europe as a whole (it has been all along designed with London/England/UK in mind)



  6. Short Report From Today's EPO Protest in Munich

    A few noteworthy points about the staff protest which coincided with the Administrative Council's meeting earlier today in Munich



  7. Growing Consensus Even Among Patent Professionals That UPC is Dying Everywhere If Not Just in the UK

    The UPC continues to sink as more and more people come to grips with the complexity of the current situation, irrespective of what countries other than the UK do next



  8. Battistelli Attacks Not Only His Staff But Also Patents Themselves (Their Quality) and the Legal Legitimacy Surrounding the EPO

    Battistelli's EPO is having not only reputation problems but also staff retention problems, patent quality problems and problems pertaining to perception of fair trials or justice regarding patents



  9. Battistelli is Creating an Atmosphere of Terror at the EPO While Exploiting Terror Attacks to Garner Sympathy

    "As if Laurent were a terrorist, the Office has imposed a house arrest and has forbidden him to enter the EPO premises," according to SUEPO, writing about one of its members at The Hague who is "maliciously accused via a fabricated procedure"



  10. Rumours That EPO President Battistelli Got Sacked to be Replaced by Christoph Ernst Appear to be Baseless

    Dr. Christoph Ernst is claimed to be the successor (interim or permanent) of the notorious Battistelli, but these claims have little or no evidence to support them



  11. Links 29/6/2016: SteamOS 2.83 Beta, Alpine Linux 3.4.1

    Links for the day



  12. The EPO Has Become Battistelli's Circus and the Administrative Council Has Been Reduced to (Illegal) Circus Animals Controlled With 'Treats'

    Battistelli's attack on justice and on the rule of law is debated among insiders who have grown increasingly impatient with the Administrative Council's tolerance of Battistelli and sometimes even Kongstad's amazing complicity



  13. The Latest Lies About the Unitary Patent (UPC) Would Have Us Believe That It's Alive and Well

    How patents-centric sites (some of which are in bed with the EPO) have responded to the 'Brexit' vote and why they're not telling us the truth about the Unitary Patent scam (often created and promoted by the same people who run and/or fund such sites)



  14. EPO Management Bunker: “The Bailiff Who Came to Deliver the Subpoena was Escorted off the Property by Five Security Guards.”

    Battistelli has essentially turned the European Patent Office (EPO) into a barracks, where he continues to enjoy immunity from the rule of law and discourages those who wish to challenge this immunity



  15. Keeping the Guard and Securing Society From Software Patents

    The policies over which Indians and Europeans have kept guard are being 'stolen' by vested interests



  16. Benoît Battistelli Further Weaponises His EPO 'Stasi' With CA/52/16

    A glimpse at what Benoît Battistelli will shortly attempt to do to the EPO, in order to cement his power in the face of growing opposition from many directions



  17. EPO Caricature: Administrative Council Control of Benoît Battistelli

    Another new caricature regarding the President of the European Patent Office (EPO) and lack of effective oversight from the Administrative Council (European Patent Organisation)



  18. EPO Caricature: Firing Benoît Battistelli

    The latest caricature regarding the President of the European Patent Office (EPO)



  19. Links 28/6/2016: Red Hat Summit 2016, Hadoop Events

    Links for the day



  20. Today's Media Coverage Says Microsoft Loves Linux, But Today Microsoft Extorted Linux Using Software Patents Again

    Luna Mobile has just been extorted by Microsoft (using dubious software patents, as usual) for using Android/Linux, but Microsoft-influenced media carries on spreading the lie that "Microsoft loves Linux"



  21. New Efforts to Work Around Barriers to UPC in Light of 'Brexit'; Behind These Efforts Are Self-Serving Patent Profiteers

    look at who's trying to work around the latest barriers to the widely-unwanted (by the public) Unitary Patent regime and what is being planned behind the scenes, or behind closed doors (by and for those who stand to profit from the Unitary Patent regime)



  22. Injunction Against Battistelli's Investigative Unit (Known Internally as 'Gestapo') Amid Serious Injustices and Bogus 'Trials'

    SUEPO, the EPO's staff union, steps up its spiel in a case against the "European Patent Organization" as defendant and "SUEPO/VEOB" (Trade Union of the European Patent Office) as claimants



  23. [ES] Con la UPC Muerta por el Resto del Termino de Battistelli, No Hay Razón para que la EPO o el Consejo Administrativo Sigan Manteniéndolo Más

    Pensamientos acerca de lo que pasará al líderazgo de la EPO después de ‘Brexit’ (salida Británica de la EU), lo que sevéramente socava el proyecto más grande de Battistelli el que usaba habituálmente para justificar sus increíbles abusos



  24. [ES] El Caradura Benoît Battistelli Debería Renunciar a Luz de la Filtrada Nueva Decisión en Su Vendeta en Contra de un Juez que se Atrevió a Decir la Verdad (Actualizado)

    Benoît Battistelli continúa quebrando las propias reglas de la EPO, no sólo las leyes naciónales, como una nueva decisión ayuda a revelar



  25. [ES] Cada Vez Más Parece Que Battistelli está Escondiéndo ‘Evidencia’ Falsa y/o Ilegalmente Obtenda de la Unidad Investigativa de la EPO

    El porqué creemos que Benoît Battistelli está cada vez mas desesperado de esconder operaciónes ilícitas de reunir ´evidencia´ lo que eventuálment lo puso a él mismo — no al acusado — en una situación catastrófica situacion que lo puede forzar (esperamos) a us renuncia



  26. Links 28/6/2016: Vista 10 Updategate, OpenMandriva 3.0 Beta 2

    Links for the day



  27. Links 27/6/2016: Linux 4.7 RC 5, OpenMandriva Lx 3.0 Beta 2

    Links for the day



  28. From Alleged Organised Crime to Vice-President of the European Patent Office (EPO)

    Željko Topić's situation in Croatia illuminated by means of recent documents from the authorities



  29. Battistelli May Still be on the Way Out as Pressure Grows in Germany, UPC in Shambles

    Pressure on Battistelli is growing even from within circles that are traditionally protective of him and a long letter is sent to Dr. Christoph Ernst, who some believe will replace Battistelli



  30. Caricature: European Patent Office (EPO) Under Battistelli

    The latest caricature about the state of the European Patent Office (EPO)


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