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  1. Technology
April 28, 1994


By CBR Staff Writer

Microsoft Corp said fiscal fourth-quarter revenue should be similar to the third quarter with OEM sales strong but perhaps with a tail-off in growth rate overseas: Michael Brown, vice-president of finance, also said a slight uptick in expenses from the third to the fourth quarter was possible; meanwhile, the cost of goods sold – typically about 16% of revenue – should remain reasonably steady, or similar to the third quarter; projecting further, Brown cautioned investors that general summer slowness could have an impact on the first quarter of 1995; he said the company was still grappling with accounting issues surrounding the way it will handle fiscal 1995 revenue generated by Chicago, its pending Windows upgrade; in more general comments, Brown said he remained a near-term bull about OEM sales at the company; meanwhile, the third-quarter sales growth of 17% in Europe and 52% in other international locations might moderate in the fourth quarter because distribution channels might still be digesting products sold in the third quarter.

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