Microsoft Highlights 2007 Business Challenges, Opportunities.

Publication: eWeek

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COPYRIGHT 2006 Ziff Davis Media Inc.

There are a number of challenges and opportunities that will affect Microsoft's financial performance in the fourth quarter of 2006 as well as its 2007 fiscal year, the company said.

During a media and analyst call on April 27, Chris Liddell, Microsoft's chief financial officer, spent a lot of time detailing the key assumptions the company used when forecasting expectations for those periods.

PC unit growth was estimated to rise between 10 and 11 percent in the fourth quarter, while total server growth was likely to remain unchanged at between 11 and 13 percent for the full fiscal year, Liddell said.

Microsoft also expects overall IT spending, and its ability to participate in the marketplace, to remain healthy, he said.

On the client side, Microsoft expects revenue growth of 7 to 8 percent for the fourth quarter, with OEM unit growth likely to grow in line with...

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