Microsoft defers $1.5 billion to Q3 - PC Retail

Microsoft defers $1.5 billion to Q3

Microsoft has announced it will defer around $1.5 billion from its current fiscal Q2 revenue to Q3, in order to account for upgrade plans and pre-shipments of the forthcoming Windows Vista and Office 2007 suite.
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The software giant will begin a coupon program for users to upgrade to Vista when it is introduced next year, in a bid to avoid a decline in PC sales over the Christmas period ahead of the operating system’s release. The generated revenue will be deferred upon fulfilment of the programme in the third fiscal quarter. It is understood that Microsoft does not expect the action to affect its full year sales outlook.

The coupons will be offered on computers purchased through until March and must be redeemed by March 31st. Also available for Microsoft Office 2007, computer makers will ultimately decide whether buyers get a discount or a full upgrade.

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