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Microsoft tells analysts to calm down - PC Retail

Microsoft tells analysts to calm down

Steve Ballmer, CEO of Microsoft, has told industry analysts they are forecasting too much growth for the firm in the wake of Vista's launch.
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The firm’s CEO warned that financial forecasters are predicting too much revenue growth in the Windows business following the recent launch of its latest operating system.

He claims that while the firm is expecting growth, much if it will come from areas where it has previously gained less revenue – such as consumers and emerging markets.

While the software giant is set to increase its operating expenses, Ballmer told the gathering of investors and analysts in New York yesterday that the final figure won’t reach the $2.7 billion increase previously estimated for 2007. “I wouldn’t expect a huge drop. Just a small drop is what you should have in mind,” he said.

The firm does expect to see gains following a reduction in piracy at the hands of Vista, but Ballmer insisted that the added revenue from that won’t be huge compared to the size of the Windows business.

“We’re driving it hard, but I think some people have gotten a little overexcited,” continued Ballmer.

Microsoft will make an announcement regarding the coming 2008 fiscal year at its April earnings conference call.

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