Looking rather like the millionaire that never carries any cash or cards with him, Microsoft Corp is presented by Spyglass Inc as part of the problem behind its profits warning (CI No 3,070). Spyglass says it is unable to determine the amount of royalties due from Microsoft because it has not received a royalty report with respect to the number of copies of Internet Explorer Microsoft has distributed, and that it does not expect to recognize any revenue in its first quarter to December 31 from Microsoft in excess of the minimum quarterly payment due. But it intends to exercise its contractual right to audit Microsoft records to determine whether additional royalty payments are owed. Microsoft says it is actually ahead of schedule on royalty payments because it has prepaid several million dollars of royalties. It adds that it hopes to resolve the disagreement amicably.
