Posted January 25, 2008 10:48 am by with 2 comments

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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! 😉

  • microsoft is a loser-company. there’s no core business. it’s run by a scatter-the-seeds-mentality. okay at everything and not experts at anything. they’ll never make money on their non-OS business. they simply don’t have the expertise to do so. now, if they spun those other units out, that might change things. until then, expect nothing but mediocre results.
    and the only reason they make money on the OS business unit is because PCs running windows is still fairly synonymous with computers-at-work. once that changes, good by msft.

    sorry for being such a bear! i can’t help but see the need for a MAJOR rehaul of the business.

  • They have to change their Ads politics