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Ballmer Promises to Milk Microsoft's Cash Cows on Time

The Redmond Company predicts $50.7 billion in revenue in FY07

By Marius Oiaga, Technology News Editor

28th of July 2006, 06:59 GMT

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CEO Steve Ballmer is looking to pull Microsoft's shares out of their stagnant momentum and has yet again committed to meeting the launching dead-lines for Windows Vista and Office 2007.
Ballmer reassured the audience at the Microsoft's annual day-long financial analysts' meeting, that its two elusive as yet applications will hit the market as scheduled. Moreover the CEO assured of the company's trajectory to decentralize its services from the OS-centric strategy into new segments of opportunity. Ballmer described Microsoft's strategy as based on four pillars, its Windows OS and Office Suite core products acting as a market platform to fuel the growth of its Internet and Entertainment Devices businesses.

"We will ship Windows Vista when it is available," commented Kevin Johnson, co-president of Microsoft's platforms and services unit, at Microsoft's financial analyst meeting. "However, we are going to ship the product when it is ready and we are just going to take it milestone by milestone."

As Vista will find its way onto a portion of the 90% desktop computers worldwide already running a copy of Windows, analyst predict that in the FY07 revenue from Vista alone is expected to hit an estimated $14.5 billion. The Redmond Company has also issued financial forecasts for the upcoming fiscal year. And if the company's main cash cows perform as expected, Microsoft will reach its double-digit revenue growth estimated to range from 12% to 14%, translating in income from $49.7 billion to $50.7 billion

"Product quality is job one," concluded Johnson. "There's no data or information that says we are not going to make the November business availability or the January consumer availability."
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