Microsoft reports healthy Q2 revenue

Microsoft's fiscal 2000 second-quarter revenue rose 18 per cent on the $US5.2 billion recorded in the year-ago quarter, according to a company statement released yesterday. Second-quarter net income was $2.4 billion and diluted earnings per share were 44 cents, up 22 per cent over the 36 cents per share reported in the second quarter of fiscal 1999.

Revenue in Asia rocketed to $606 million in the second quarter of fiscal 2000, up from $389 million recorded in the same quarter a year ago.

The company's second-quarter fiscal 2000 results include a one-time charge of around 3 cents per share for the settlement of a lawsuit with DR DOS owner Caldera.

Microsoft did draw attention to a drop-off in demand of business PCs during the second quarter that adversely affected the company's business. John Connors, Microsoft's chief financial officer, said that given that fall in demand, the vendor continues to anticipate "moderate revenue growth during the remainder of fiscal 2000".

Although cautious, Microsoft is hoping that the official release of its long-awaited Windows 2000 operating system on February 17 will net it plenty of revenue.

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