Following its $425m acquisition of WebTV Networks Inc in April (CI No 3,135), Microsoft Corp will be writing off $300m for in process research and development this quarter as a result of the purchase. The software giant made the news known in its annual report to shareholders, and Microsoft chairman Bill Gates told shareholders in a letter that the company would spend some $2.6bn on research and development in the current year, compared to the $1.9bn it spent last year. The report also warned that operating margins for the year commencing July 1, are likely to be lower than those recorded in 1997.
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