Microsoft CFO reaffirms financial outlook

BOSTON: Software giant Microsoft Corp. chief financial officer John Connors

on Wednesday reaffirmed the company's financial guidance for the current fiscal

year 2002, and the company said it still expects a boost from its new Windows XP

operating system in the fall.

Connors, speaking to investors at an SG Cowen Technology Conference in

Boston, said the company's expectations remain as they were in mid-July, when

Microsoft reported fourth-quarter 2001 results.

"We'd anticipated for fiscal year '02 that we would achieve revenue of

between $28.8 (billion) and $29.6 billion and that our operating income would be

up about eight per cent and that our earnings per share would come in the range

of $1.91 to $1.95," he said. "A key variable in our assumption is that

PC shipment demand for the full fiscal year would come in at mid-single digit

growth," he added.

Connors also said that the first quarter of fiscal 2002 ending September will

be as anticipated, or down from the year-earlier quarter. Analysts expect the

company to bring in 40 cents a share during the first quarter, down from 46

cents a share in the year-ago period, according to Thomson Financial/First Call.

The company remains committed to the notion that the launch of its new

operating system late next month will give a boost to demand for personal

computers. Personal computers have had a year of stagnant growth as consumer

demand has fallen off and the economy has slowed.

"In the second quarter we anticipate that PC shipments will pick up a

bit with the launch of Windows XP on Oct. 25," he said. "And that the

second half of the year sees a modest improvement over the previous year."

(C) Reuters Limited 2001.