Published January 24, 2013
Microsoft Corp reported a dip in fiscal second-quarter profit on Thursday as weaker sales of Office software ahead of a new launch offset a solid start for its Windows 8 operating system.
COLIN GILLIS, ANALYST, BGC FINANCIAL
"They put up some big numbers - it's in line with expectations.
"There is a lot of pessimism around the company tied to the PC marketplace. It's been disruptive but the PC market is far from dead. It may not be growing but it's still an extremely sizable marketplace.
"It misses the boat to just focus on the PC market. They have multiple revenue streams. I like the Window revenue line. Embedded in that is the Surface sales.
"Even if they have minimal success with Surface, they don't need much to move the needle. I would say it's a very nice vanilla quarter. In this environment, we'll take it."
DANIEL IVES, ANAYLST, FBR CAPITAL MARKETS
"Windows 8 continues to have an uphill battle in convincing investors this is going to be the key to the growth story for Microsoft."
It "continues to have strong PC headwinds. The initial optimism -- now you start to see the numbers. It continues to be a major prove-me product cycle.
"The combination of some macro headwinds, tablet cannibalization and slower-than-expected Windows 8 adoption continues to create a tougher environment for Microsoft going forward."
(Reporting By Malathi Nayak in San Francisco and Jennifer Saba in New York)