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

01.29.11

Microsoft Site Hacked and the Company is Apparently Faking Financial Reports, Again

Posted in Deception, Finance, Microsoft, Security, Windows at 6:56 am by Dr. Roy Schestowitz

Battle in the sky

Summary: Odd cases of conflicting information and information leaks suggest that Microsoft cannot keep its financial story straight; Microsoft’s PR people have no response, either

IT IS implicitly but widely reported that Microsoft’s press release regarding results is truth and all the numbers contained in it must not be questioned or audited independently. One thing we mentioned very briefly the other day is that despite Vista 7 hype, “Microsoft’s Windows revenues plunge 30%” (not so surprising at all):

Revenues from Windows plummeted 30% last quarter compared to the same period the year before, Microsoft said on Thursday.

“Microsoft Web site hacked to get at financial results early,” writes journalist Joab Jackson, linking to this bit from a Forbes blog which says:

Ryan Terpstra didn’t post Microsoft’s quarterly earnings early. Microsoft did. Terpstra just found them first — forcing Microsoft to broadly release its numbers before the close of trading Thursday.

Terpstra’s 22-person company, Selerity, describes itself as a “low latency, real time-fact aggregation and event data company.”

In plain English, Terpstra explains that what the Jersey City-based company does is automate a trick journalists have been using to pry earnings out of publicly traded companies minutes before they’re ready to release them.

That’s rather embarrassing for several different reasons, but the main finding we found fascinating is this:

Microsoft (MSFT) announced its earnings, and reading through them was enough to raise your eyebrows. Oh, not because of record earnings or slowing Windows sales or strong performance by Office and Xbox 360 and Kinect. No, the real shocker was that not all the numbers in the 10-Q filed with the SEC and the earnings press release were the same. The revenue and operating income (loss) breakout by division were completely different. And not only were the numbers for last quarter different, but the numbers from the same quarter last year were different.

[...]

[Update: I heard back from the PR people. I quote: "I’d be happy to look into this for you. Can you please provide insight regarding your deadline?" How about now?]

For those who cannot remember, a few months ago it was further confirmed or validated that Microsoft was manipulating its financial results.

Microsoft financial problems and irregularities were also mentioned by our reader Wayne recently. He did a series on the subject over at his own Web site and the British press gave that coverage which includes:

Are Microsoft’s days numbered? – report

[...]

He cites these further reasons as to why Windows is doomed:

1 Not one of those tablet computers can run Microsoft Office.

2 Not one of those tablet computers can run Microsoft Windows.

3 Windows Phone 7 was two years too late, and being outsold by Apple’s IOS and Google’s Android.

4 Kinect, Microsoft’s motion sensing add on for the XBox 360 is being outsold by Sony’s motion sensing add on.

5 The OEMs are learning that depending upon Microsoft is dangerous.

“Can Microsoft turn things around? Of course they could. The question is will the company make the hard choices that need to be made, and I think that they won’t.”

If Microsoft’s results are as healthy as it claims them to be, why are executives leaving in droves? This month alone we have already covered nearly a dozen high-level departures (like Vice Presidents). Something does not add up here.

“Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers.”

The Economist, 1999

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

2 Comments

  1. Will said,

    January 30, 2011 at 9:02 am

    Gravatar

    Shouldn’t that second to last sentence be “leaving in droves” instead of “leaving in drones”?

    Dr. Roy Schestowitz Reply:

    That’s an hilarious typo, sadly not a Freudian slip (unless unintended). Thanks, I’ll fix it.

What Else is New


  1. Patent Scope at the EPO is Totally Out of Control, UPC Will Make Things Worse

    A look at the practical issues with the EPO, where patent scope and litigation scope have been vastly extended so as to benefit multinational corporations and possibly patent trolls



  2. Links 26/5/2015: Reviews of Kubuntu 15.04, Linux 4.1 RC5

    Links for the day



  3. Süddeutsche Zeitung Says Talking Helps While EPO Management Back-stabs Other Side of the Table

    German media gives the impression that there is peace and harmony now that Benoît Battistelli and his circle of power speaks to staff, but nothing is said about simultaneous (albeit covert) attacks against that staff



  4. Large Corporations Call the Shots in US Patent Reform

    A reminder of where we stand on the issue of patent 'reform' in the US and who is controlling or shaping it



  5. Microsoft Puts Proprietary Windows and Hyper-V Inside the Free Software-Centric OpenStack

    OpenStack, which celebrates rapid growth in this month's event in Canada, is facing a proprietarisation threat from Microsoft



  6. Microsoft's Secret Lobbying, Bullying, and the Long History of Blackmailing Politicians Around the World

    British media covers Microsoft's abuse in the UK, but there are many similar incidents, and not just in the UK



  7. Frankfurter Allgemeine Zeitung on Benoît Battistelli and Four EPO Suicides

    German press article from April 2015 (with translations)



  8. Links 24/5/2015: CrossOver 14.1.3, NTFS-3G Vulnerability

    Links for the day



  9. Links 23/5/2015: Fedora 22 to May 26th, Netflix in SteamOS

    Links for the day



  10. The Patents Production 'Industry' (Patent Lawyers) Still Fights Hard to Salvage Software Patents

    A review of recent writings about software patents and patents on business methods in the United States, demonstrating that patent lawyers have gotten very vocal and sneaky (trying to evade the rules)



  11. Patents as a Marketing Strategy: USPTO Now Part of the Advertising Industry

    The existence of publicity patents, or patents whose sole purpose is to advertise some products, serves to discredit the US patent office, which was originally set up to promote science and technology



  12. Microsoft Blackmails and Extorts British Politicians Over Open Standards and Free Software-Leaning Policies

    Microsoft's digital imperialism in the UK getting defended using blackmail, reminding a lot of Brits that Microsoft is just as evil as ever before



  13. Microsoft Gives Another Bug a Name, This Time Logjam™

    The Microsoft crowd is good only at marketing, even when it comes to small bugs in software



  14. Links 22/5/2015: Fedora 22 Final Release is Near, Canonical IPO Considered

    Links for the day



  15. More Utter Shame Unveiled at Battistelli's EPO: Intimidation Tactics With Help From 'Control Risks'

    The unaccountable thugs who run the EPO have hired London-based spooks to help silence their opposition and their critics



  16. GNU/Linux Still Under Attack From Apple and Microsoft, Patents Remain the Weapon of Choice

    A timely reminder of the importance of patent matters, for they are being used to eliminate the zero-cost advantage of Free/libre software and make it more proprietary, privacy-infringing, and user-hostile (as a result of blackmail)



  17. Gartner Group and NASSCOM: Will Lie for FUD, on Behalf of Microsoft and Proprietary Software

    Some of the latest arguments against Free/libre software turn out to be arriving from couriers of Microsoft and its agenda



  18. Windows is a Franchise in Demise, Don't Believe the Hype

    Ongoing propaganda about Vista 10, 'cloud', and other buzzwords or brands are put in perspective



  19. Links 21/5/2015: Fedora 22 RC2, CERN Chooses OpenStack

    Links for the day



  20. Microsoft is Again Showing Its Hatred of Free/Open Source Software by Lobbying the Indian Government to Drop a Rational National Policy

    Microsoft decides to attack Free/Open Source software (FOSS) in India, where the corporate media is very much complicit in misleading the public



  21. Links 20/5/2015: Containers, OpenStack, and EXT4 Corruption

    Links for the day



  22. The PATENT Act, Distraction of Trolls, and Lobbying for Software Patents by Protectionists

    Only large corporations and their lawyers are able to formally change the US patent system through public officials and politicians, despite recent rulings from very high courts



  23. Corporate Media and Friends of Microsoft Are Still Lying About the Cost of Vista 10

    In a desperate effort to beat operating systems that are Free (libre) and free (gratis), such as GNU/Linux or Android, Microsoft shores up the illusion of 'free' (gratis) Windows



  24. Links 19/5/2015: Linux 4.1 RC4, Thunderbird 31.7.0, OpenStack Event

    Links for the day



  25. Links 18/5/2015: Russia Chooses Jolla, Many New Distro Releases, Meizu Devices

    Links for the day



  26. Even Converting an Image to Greyscale is Now a Patent

    Simple mathematics becoming patented as Fujifilm claims 'ownership' of photographic conversion to greyscale



  27. Grooming of the World's Biggest Patent Troll, Nathan Myhrvold of Microsoft and Intellectual Ventures

    UCLA and Microsoft-linked media are framing big thugs as heroes, doing a great disservice to both academia and journalism



  28. The EPO's Fight to Bring Software Patents Into Europe is One Step Closer to a 'Victory' (for Multinationals)

    Opposition to the Unified Patent Court (UPC) is being crushed and Italy is one of the latest actors to have fallen in the battle



  29. Microsoft's 'Former' Staff Continues With His Anti-Google Rhetoric at CBS

    A Microsoft intern, who has moved on to journalism, is still showing his affinity for Microsoft with apologetics and spin



  30. More of Microsoft's False Claims About Cost of Vista 10 and More Layoffs

    Vista 10 is still being marketed using lies and Microsoft may be going down the same route as Nokia


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