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[News] [Rival] Microsoft Slapped Down by Financial Analysts, Hits Bottom Low

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Microsoft Shares Flirt With 10-Year Low; UBS Cuts Ests

,----[ Quote ]
| Bellini writes that the company is not likely to take further expense 
| reduction moves - the company basically said exactly that at the meeting 
| yesterday - and adds that “Microsoft is braced for further deterioration of 
| the macro environment but plans to invest in its products to realize leverage 
| once the market turns around.”    


Microsoft says no new cost cuts, shares hit 11-year low

,----[ Quote ]
| Microsoft Corp outlined plans to offset revenue declines as the PC market 
| shifts to low-cost netbooks, but it failed to announce more cost cuts, 
| sending its shares to an 11-year low.  


"The collaborative, massively distributed development process behind the
Internet and Open Source projects is not your enemy. It is your friend, the
source of basic research that you can turn into your next generation of
                --Tim O’Reilly


,----[ Quote ]
| Microsoft, the world’s most valuable company, declared a profit
| of $4.5 billion in 1998; when the cost of options awarded that year, plus the
| change in the value of outstanding options, is deducted, the firm made a loss
| of $18 billion, according to Smithers.



,----[ Quote ]
| THE ALLEGATIONS WERE shocking: For years, Microsoft has systematically
| distorted its profit figures in an effort to consistently beat Wall Street
| expectations and keep its stock price steadily rising. The false reports
| would violate SEC regulations, and amount to outright fraud.
| More shocking was the source of the allegations: Microsoft's chief of
| internal audits, Charlie Pancerzewski, who reported directly to the company's
| chief financial officer.
| Most shocking of all was what happened to Pancerzewski when he reported the
| suspicious bookkeeping to his supervisors, Microsoft CFO Mike Brown and chief
| operating officer Bob Herbold, in the spring of 1995. Soon afterward,
| Pancerzewski—who for nearly five years had received stellar performance
| evaluations—received his first-ever unsatisfactory one, and was eventually
| forced to resign.
| Two months ago, Microsoft quietly settled a lawsuit containing these
| allegations, filed in 1997 by Pancerzewski under the Whistleblowers
| Protection Act. The auditor claimed he was wrongfully terminated after
| telling his supervisors that Microsoft might be breaking securities and tax
| laws. The lawsuit made its tortuous way through several rounds of pretrial
| motions until last fall, when US District Judge Carolyn Dimmick denied
| Microsoft's final plea for summary judgment, finding credible evidence that
| Microsoft may have violated SEC rules, as Pancerzewski alleged. Shortly
| thereafter, Microsoft and Pancerzewski settled out of court. Terms of the
| agreement were sealed, but one source who claims familiarity with the case
| says that Microsoft paid Pancerzewski $4 million.

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