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October 26, 2007


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Chris Carlin

You always have to be careful with these reports. Microsoft has a history of being especially devious with its financial announcements and often it takes a week or two for people to figure out what's really going on behind the scenes.

For example, at first glance I note the widely hilighted 91% Y/Y number. The important thing to keep in mind is that Q1 2007 had a dip in sales for the division after they flooded the channel in Q4 2006. In fact, a large part of this growth probably indicates ongoing recovery from that event.

I'm not saying the company didn't do well. I'm just saying that the company often wins praise over numbers born of questionable accounting.

Stephen Skarlatos


I agree, your statement is validated by the flat to -8% forecast for the 2nd quarter.

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