If you’re an investor in Microsoft (MSFT) then you’re no doubt rejoicing at the company’s recent quarterly numbers. Not only is profit up 81% from last year, but the company is so confident about the rest of the year that it raised its earnings guidance!
Now, if you were hoping that MSFT’s search and online advertising unit would be a huge chunk of that profit increase, you might want to go back into hibernation–for a few more years!
Microsoft gave credit for its profit increase to its launch of software–mostly Vista–and not much else. In fact, according to MarketWatch, Microsoft lost $245 million from its "online services" unit (although revenue did increase).
OK, but surely MSFT’s search efforts are about to kick-in right? Wrong!
Chief Financial Officer Chris Liddell doesn’t want you to get your hopes up.
"We see it as a multiyear journey that we’re going on," he said, adding that Microsoft hopes the unit will "be at a critical mass in several years."
Several years, really? By which time, we’ll all have brain implants and won’t be using the web anyway–that’s when MSFT will finally crack 10% share!