Microsoft CFO Backs '02 Revenue Outlook

Sep 05 2001

BOSTON -- Microsoft Corp. sounded an optimstic note during a technology conference filled with pessimism, as its chief financial officer reiterated the commpany's revenue and earnings goals for fiscal 2002.

John Connors reiterated the company's July outlook that it will hit a revenue target in the range of $28.8 billion to $29.6 billion for the fiscal year that began July 1 and post earnings per share between $1.91 and $1.95.

The company expects the first quarter will be soft, Connors said, but the second quarter will be pulled up by the launch of Windows XP in late October.

He said Microsoft has not been hurt as much as other computer products and service providers because it did not have a lot of dot.com and telecommunications-industry customers and because it has "a broad geographic footprint" that helps it avoid regional problems.

He said the commpany's principle concern right now is whether the personal computer market stabilizes so it can meet its PC products shipment forecast, he said.

" the downturn has had no effect on our profit plans or geographic expansion plans," he said.

Asked about the potentially industry-shaking acquisition of of Compaq Computer Corp. by Hewlett-Packard Inc. , Connors said it could put the combined company "in a good spot" when the industry revives and that a downturn like the current one could turn out to be a good time "for bold moves."

"I think they could build a lot of value in the next few years," as th companies come together, he said.

Connors made his comments Wednesday at SG Cowen's annual fall technology conference.