Microsoft clamps down
Seattle Times | at | by Mike
In the past year, Microsoft's hefty profit included $1.1 billion in customer payments that the company won't see again. The money came with no strings attached - no commissions to be paid, no rebates to be given and no other costs necessary.
In the next year, that cash will disappear as some key contracts expire. And as much as the company expects to grow, the $1.1 billion hole is going to hurt.
That's not all Microsoft faces as it begins its new fiscal year Thursday. Executives have said the company will not increase expenses, and yearly sales are expected to grow less than 10 percent for the first time. Meanwhile, shareholders are demanding an improved bottom line, and the company's $56 billion cash hoard is coming under fire.