11.16.10

Confirmed: Microsoft Still Manipulates Financial Reports

Posted in Deception, Finance, Fraud, Microsoft, Windows at 4:43 pm by Dr. Roy Schestowitz

Classified

Summary: A real case of investigative journalism from Paul McDougall shows that Microsoft misreports its results

MICROSOFT is not new to fraud charges. Even when the company hit its peak value (or thereabouts) the company was caught manipulating reports, after a whistleblower showed evidence. Microsoft later paid him several millions of dollars to drop the charges and go away, but the SEC did not go away. This whole story and many others can be found in our wiki. There are some more recent allegations as well.

Let us bear in mind that Windows profit declines despite Microsoft cheating by the numbers as Paul McDougall helps reveal: (thanks go to Girts for the pointer)

Microsoft’s most recent Windows sales totals got a boost from the fact the company quietly added revenues previously assigned to other groups to its operating systems unit, a bit of accounting legerdemain that, along with other bookkeeping moves, helped the Windows group post big gains in the past quarter, according to an InformationWeek analysis of the software maker’s SEC filings.

[...]

Just leaving Bolzano after three nights here for SFSCON (a small but perfectly formed FOSS conference). Passing through the tiny airport I noticed an unusual security requirement – which was being actively enforced. Despite apple strudel (that’s a delicious, giant pastry filled with spiced apple and mixed berries) being a major tourist item on sale in Bolzano, it’s banned on aircraft here.

There are surprisingly few comments on this article, which is an exclusive. More people need to see this. One commenter says: “Given that the reason Microsoft’s share price has maintained its price is due to what is happening in its three traditional core businesses, could Microsoft be burying underlying sales and growth problems simply by the way it uses inter-business charges? After all, investors have now become so blasé about the fact that Microsoft is bleeding around more than a $1B a year in its Online Services Division, what matter whether it loses $1B or $2B. However, adding another $1B to the three core business makes things look somewhat rosier than perhaps they really are.

“Questions should be asked, more especially given the recent sale of $1.3B shares by Microsoft CEO Steve Ballmer.”

Not just questions should be asked; lawsuits should be filed, too.

Here is another such post which relies on the above as its source and adds:

Microsoft declined to comment on how the company’s Windows division gained the extra $259 million.

Why can’t Microsoft comment? Probably because it’s true. Let us remember that Microsoft’s former CTO quit the company and was paid to keep quiet

Novell admitted playing the bucket game several years ago, which leads to the question: shouldn’t shareholders be allowed to receive compensation if they sue the company for misreporting figures while it’s public traded? Shouldn’t the SEC step in again?

“One strategy that Microsoft has employed in the past is paying for the silence of people and companies. Charles Pancerzewski, formerly Microsoft’s chief auditor, became aware of Microsoft’s practice of carrying earnings from one accounting period into another, known as “managing earnings”. This practice smoothes reported revenue streams, increases share value, and misleads employees and shareholders. In addition to being unethical, it’s also illegal under U.S. Securities Law and violates Generally Accepted Accounting Practices (Fink).

2002 story about Charles Pancerzewski, Microsoft

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

This post is also available in Gemini over at:

gemini://gemini.techrights.org/2010/11/16/towards-evidence-of-fraud/

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

A Single Comment

  1. twitter said,

    November 16, 2010 at 7:46 pm

    Gravatar

    It’s good that they debunked the double didgit growth lie, but a more careful investigation would reveal declines. Sadly the author ignores last year’s deferred revenues and repeats Net Application’s nonsensical market share numbers. As I mentioned previously, when the deferral fraud is removed, revenues were essentially flat despite growth in the global PC market. Revenue shifting plus deferred revenue turns the balance negative. No wonder Microsoft is so loud these days. The Windows business is not healthy as starving retail and OEM partners will tell you and Information Week should have asked them.

What Else is New


  1. The EFF Attacks Software Freedom and Promotes Fake Privacy Linked to Microsoft

    Only weeks after attacking Software Freedom (the ad hominem way, which is easier) the EFF endorses a Microsoft-linked privacy abuse, misframing it as some sort of privacy champion



  2. Richard Stallman on How Corporate Media Limits What People Are Allowed to Think and Say

    What the founder of the FSF told yours truly a number of years ago about the behaviour of corporate (funded and controlled by corporations) media



  3. Exposing Hard Truths is the First Step or the Path Towards Justice

    A reflection and a moment taken to set aside tribalism (shallow differences based on allegiances of personal comfort), for we need look back at actual facts — however inconvenient at times — and consider the reality of the situation



  4. IRC Proceedings: Thursday, April 15, 2021

    IRC logs for Thursday, April 15, 2021



  5. [Meme] Laundering Bribes as 'Cooperation Money'

    Germany has financial interest in ensuring that EPO abuses carry on and nobody holds the EPO accountable



  6. Articles in Support of Richard Stallman

    Reproduced with permission



  7. EPOLeaks on Misleading the Bundestag -- Part 20: Taking Stock

    Benoît Battistelli's legacy at the EPO is a legacy of corruption and cover-up; we take stock of how illegality was defended and persists to this day



  8. Links 15/4/2021: Zorin OS 16 Beta and Pushing Linux to GitHub- and Microsoft-Connected Rust

    Links for the day



  9. [Meme] Enemies With Common Interests

    The Software Freedom Movement (or Free Software Movement) has many enemies; some of them just hide in the shadows or speak out through shadowy front groups/NGOs that they semi-officially sponsor



  10. [Meme] Germany's Red Cash Cow

    EPO brings a lot of money to the German state. But at what cost to citizens and Germany’s public image?



  11. EPOLeaks on Misleading the Bundestag -- Part 19: The Deafening Silence of the Media

    "There has been speculation that Maas might have had his own political interest in protecting Battistelli and the Balkan Express because of certain allegations about financial irregularities involving the German Patents and Trademark Office (DPMA) which were doing the rounds at the time."



  12. The Indirection Game

    How to attack institutions and concepts by personifying them, then proceeding to character assassination based on lies and deliberate distortions



  13. Links 15/4/2021: LXQt 0.17, Proxmox Backup Server 1.1

    Links for the day



  14. The Patent Battles in Europe Are Connected to the War on GNU/Linux (as a Community-Led Effort)

    Monoplisers of GNU and Linux want us to think that OIN is the solution while they actively lobby for software patents in Europe and the people in charge of Europe’s second-largest institution and Europe’s largest patent office help them; this long video contains thoughts about news from the past couple of days



  15. Richard Stallman: Freedom is the Goal (Updated)

    What Richard Stallman (RMS) told me in person on his trip here



  16. IRC Proceedings: Wednesday, April 14, 2021

    IRC logs for Wednesday, April 14, 2021



  17. EPOLeaks on Misleading the Bundestag -- Part 18: Zero Tolerance for “Lawless Zones”?

    "It comes as no surprise that Maas appeared as a guest of honour at the European Inventor of the Year Boondoggle in Berlin in 2014 where he was seen on stage clapping along with the EPO President."



  18. Richard Stallman's Honors and Awards (and Why He Resigned in 2019)

    Reproduced with permission



  19. Links 14/4/2021: Alpine Releases and X.Org Server 1.20.11 Release (Security)

    Links for the day



  20. Links 14/4/2021: EasyOS Dunfell 2.7, Tor Browser 10.5a14

    Links for the day



  21. EPOLeaks on Misleading the Bundestag -- Part 17: Jawohl, Herr Minister!

    A French-German co-production of "Yes, Minister!" starring Raimund Lutz, Heiko Maas and Christoph Ernst. Directed by Benoît Battistell.



  22. Over 1,000 EPO Workers Initiate Legal Challenge Against the EPO's Attack on Salaries (in Defiance of Assurances Made to Workers Who Relocate to Another Country With Whole Families)

    The EPO’s attack on workers and pensioners isn’t going ahead without challenge; while the “Mafia” (what EPO workers call the management) loots the organisation it takes away money from the workers — i.e. from besieged folks who do all the work and face growing workloads during a pandemic



  23. Who is Richard Stallman?

    Reproduced with permission



  24. IRC Proceedings: Tuesday, April 13, 2021

    IRC logs for Tuesday, April 13, 2021



  25. Links 13/4/2021: FreeBSD 13.0 Final, Slackware 15.0 GNU/Linux Beta Release and OpenMandriva Lx 4.3 Plans

    Links for the day



  26. IBM Stroking the Masters

    IBM continues to diminish its weakly-supported thesis about the word “Master” being inadequate in all contexts and IBM’s front group, the Linux Foundation, has just promoted more of that same self-serving agenda in the corporate media (screenshot below from 5 minutes ago)



  27. The 'Stallman Support' Web Site and How You Can Support Truth, Not Just Software Freedom

    The Stallman Support Dot Org Web site (stallmansupport.org, "In Support of Richard Stallman“), endorsed by Stallman himself, sets the record straight while the corporate media keeps peddling lies and distortions



  28. An Examination of Correspondence Between the Tweedledum-Tweedledee Duo, Lutz and Ernst

    A quick look at the letters and E-mails sent back and forth from the current VP5 and former VP5 of the EPO, Europe’s second-largest institution that the German government has let exist outside the rule/reach of any law



  29. EPOLeaks on Misleading the Bundestag -- Part 16: An Inimitable Duo

    How the efforts to reform the EPO's data protection framework were derailed by the actions of Lutz and Ernst



  30. How the GNU Operating System Really Started (Almost a Decade Before Linux Came Out)

    Later this year Linux turns 30, but Linux is just a component added to the GNU Operating System, developed a very long time earlier based on the design of UNIX (the mainstream media likes to distort that part of history); here’s the creator of the GNU Operating System, telling me his story here in the United Kingdom (we did many clips like these and this one seems very timely)


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

Recent Posts