PC sales slowdown to affect Microsoft earnings?

NEW YORK: Goldman Sachs on Thursday said it has cut its 2001 earnings per

share view on software giant Microsoft Corp. to $1.88 from $1.91, citing

sluggish retail PC demand.

Goldman noted that consumer PC sales account for only about 10 per cent of

Microsoft's total revenues and said that "with corporate demand likely

in-line with expectations our estimate revision is only relatively

moderate."

Goldman cut its December quarter revenues expectation by $125 million to a

range of $6.775 billion to $6.8 billion, up 11 per cent over last year versus

its earlier 13 per cent estimate.

Goldman cut $200 million from its March estimate and $150 million from its

June estimate.

Goldman still holds a market outperform rating on Microsoft.

Shares of Microsoft closed at $56-11/16 on Wednesday, up from a 52-week low

of $48-7/16 but well off a $52-week high of $119-15/16.

(C) Reuters Limited 2000.