Microsoft Corp is to defer around $400m of revenues from its third quarter to its fourth because of a slight delay in getting its Office 2000 software released to manufacturing. The revenues come from coupons Microsoft has been handing out to recent buyers of Office 97, entitling them to a free upgrade. The revenues will show up on the third quarter balance sheet as unearned, but the value won’t be recognized by Microsoft until the product actually ships.
Now in the finals stages of testing, Office 2000 should be released to manufacturing early next month, during Microsoft’s fourth fiscal quarter. The first customers, large enterprises, will receive copies on CD during the quarter, with wide availability in the channel later in the quarter. International versions should also be released during the quarter, Microsoft said, though probably later than US versions. The $400m will equate to an $0.08 per share shortfall in earnings, which Microsoft expects to make up through increased income from investments. The $0.08 will show up on the positive side during the fourth quarter instead, Microsoft said.
