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Microsoft Corp. posted a 65 percent rise in quarterly profit Thursday, topping Wall Street estimates thanks to better than expected demand for its new Windows Vista operating system.

Shares of Microsoft (Charts, Fortune 500) rose 5 percent after the announcement, in which the world’s biggest software company also forecast 2008 profit at the midpoint of a range of analyst estimates.

“The strength of Vista is really driving this,” said Kim Caughey, analyst at Fort Pitt Capital Group. She added that the company had set “manageable expectations for the full year 2008, which generally allows them some headroom.”

Microsoft posted a net profit of $4.93 billion, or 50 cents per diluted share, in its fiscal third quarter ended March 31 versus a profit of $2.98 billion, or 29 cents per share, in the year-ago period.

Excluding tax benefits and a legal charge, Microsoft earned 49 cents per share, beating the average analyst forecast of 46 cents, according to Reuters Estimates.

Revenue rose 32 percent to $14.4 billion. Analysts, on average, had forecast revenue of $13.89 billion, with estimates ranging from $13.73 billion to $14.09 billion, according to Reuters Estimates.

Microsoft, which competes with Google (Charts, Fortune 500), Oracle (Charts, Fortune 500) and Apple (Charts, Fortune 500), deferred about $1.7 billion in revenue from its second quarter to its third quarter to account for upgrade coupons given to customers prior to the January launch of Vista and Office 2007.

Microsoft expects the latest versions of its two flagship products to underpin profit growth over the next few years. Those two product lines alone account for more than half of Microsoft’s total revenue and a majority of its profits.

Chief Financial Officer Chris Liddell said consumer sales of Vista surpassed the company’s own expectations by $300 million to $400 million.

"There is very good acceptance from a launch perspective for the product. It’s early days, but we’re encouraged by it," Liddell said in an interview with Reuters.

The company’s 2008 business year, which starts in July, will be the first full year of earnings to benefit from consumers buying new computers loaded with Vista and Office 2007 or from companies upgrading computer systems.

Microsoft forecast diluted earnings per share of between $1.68 and $1.72 for the coming business year, on revenue of $56.5 billion to $57.5 billion.

Analysts had forecast earnings of $1.69 a share on sales of $56.34 billion, with sales estimates ranging from $55.3 billion to $59.6 billion, according to Reuters Estimates.

"There was a lot of concern in the marketplace over Microsoft’s 2008 outlook. We think this forecast should allay these concerns," said Andy Miedler, technology analyst at Edward Jones.

Microsoft Chief Executive Steve Ballmer gave investors a reason to pause in February when he said that some analysts’ Vista sales estimates in fiscal 2008 were "overly aggressive."

For the current quarter, Microsoft said it expects to earn between 37 cents and 39 cents a share on revenue of $13.1 billion to $13.4 billion. Analysts, on average, were expecting earnings of 41 cents a share and revenue of $13.31 billion.

Liddell said the shortfall in fourth-quarter forecasts was attributable to marketing expenses shifted to the current period but emphasized that the company will meet its full-year estimates for expenses.

Microsoft shares rose to $30.48 in extended trading. In regular Nasdaq trade, the stock closed up 11 cents at $29.10.

Skybus is a new airline launched today boasting $10 tickets, but you get what you pay for.

Taxes and fees apply: add on about another $10 per leg.
Limited amount of $10 seats. Others may be $25, $50, or $75.
Want to check luggage? First two backs are $5 each. Next one is $50.
Outside food and drink are prohibited (good luck enforcing that one. I’m sorry sir, we’re going to have to turn this plane around if you don’t dispose of your sandwich).
Inflight entertainment: “Bring a book.”
Customer service: “We don’t have a phone number. Seriously. We’d love to chat, but those phone banks are expensive. And a good website like skybus.com is even more convenient.”
Gate staffing: “You probably won’t see any agents at the gate until boarding time.”
Seating: Choose your own, but jump to the head of the line for $10.

Right now all flights route through the hub of Columbus, OH. If that isn’t your origin or destination point, you’ll have to buy an extra ticket for the second leg.

Sounds like an interesting concept. Pay only for the services and accommodations you actually want and use. We’ll see whether the Ryanair style approach to air travel “takes off” (we know, shoot us now) with consumers. — BEN POPKEN

UK-based consultancy Millward Brown on Monday announced Google is the most popular brand in the world, eclipsing Microsoft and General Electric. Google’s ranking is based on the annual “Top 100 Brandz” survey that looks at the strength of a firm’s name and image rather than weighing its size or stock market value.

You can’t eat it, drink it, drive it or wear it. Ten years ago the name didn’t exist, but on Monday Google (Nasdaq: GOOG) was named the top brand in the world.

The Internet search engine has overtaken some of the biggest names of the past 100 years, including General Electric, Marlboro, Coca-Cola, Toyota and McDonald’s.

The rankings, produced by international brand consultants Millward Brown, also highlight UK-based retailer Marks & Spencer as the fastest-growing brand in the world — in percentage terms at least.

The British store chain has entered the list of the world’s 100 biggest brands for the first time at number 68, after a 192 percent leap in its brand value to pounds 4.75 billion (US$9.51 billion).

Highest Rankings

In absolute terms, however, this is dwarfed by Google’s pounds 14 billion ($28 billion) leap in value, from last year’s pounds 18.7 billion ($37.4 billion) to this year’s pounds 33 billion ($66 billion).

Its ranking as the most powerful brand on the planet is based on an annual survey that looks at the strength of a firm’s name and image rather than simply weighing up its size or stock market value.

The Google brand was registered in September 1997 by founders Larry Page and Sergey Brin, and was ranked seventh in last year’s table.

Last year’s top brand, Microsoft (Nasdaq: MSFT) is now valued at pounds 27.5 billion ($55 billion), putting it this year in third place, with General Electric second with a value at almost pounds 31 billion ($62 billion).

The highest ranked non-U.S. company, China Mobile, is fifth on the list at pounds 20.6 billion ($41.2 billion).

Most Improved Brands

The combined value of the “Top 100 Brandz,” as they are termed by Millward Brown, has risen 10.6 percent in the past year to pounds 800 billion ($1.6 trillion).

The UK’s most powerful brand is Vodafone (NYSE: VOD), worth pounds 10 billion ($20 billion), followed by HSBC at pounds 8.7 billion ($17.4 billion) and Tesco (Nasdaq: TESOF) at pounds 8.3 billion ($16.6 billion). Royal Bank is Scotland’s biggest brand, valued at pounds 3.6 billion ($7.2 billion) and ranked 82nd.

The research found that the most improved brands were those which appealed to the world’s fastest developing economies, such as China, Brazil, India and Russia.

Looking at BRICs

A spokesperson for Millward Brown said: “Consumers in emerging markets, especially the ones known as the BRIC countries (Brazil, Russia, India and China), have more disposable income than ever. In order to succeed in the BRICs, Western brands must offer products or services that are relevant to local consumers.

“Fast food brands such as KFC and McDonald’s appeal to BRIC consumers looking for a Western dining experience,” he added.

Also in with the BRICs are clothing brands such as Nike, Levi’s and Zara, which fill the gap between local brands and imported luxury brands by providing affordable fashion to young consumers.

The spokesperson added: “Luxury brands such as Louis Vuitton and Rolex are also seeing significant growth in these markets, as wealthy consumers look for brands that represent their status.”

The values are calculated from Millward Brown’s “Brandz Database,” which includes interviews with more than one million consumers worldwide, financial data and brand performance over the past year.

Google’s Rise

Marketing expert Mark Gorman, owner of the ThinkHard agency, said Google’s ascendancy demonstrated the extent to which the world had gone digital, and the media revolution that has taken place.

“When you consider that it was built in non-traditional ways, it has been a phenomenal success. Since they floated it, the share price has gone very well.

“Social media such as YouTube and MySpace will come through on the back of it. People are looking at more interesting ways of reaching an audience. … Information is power, and Google is the world’s most information-heavy product.

“What is surprising is how they have turned something so intangible into the world’s leading brand,” Gorman noted.

By Alan MacDermid
Newsquest Media Group
04/24/07

© 2007 ECT News Network.

Economic Indicators guide

Writed By Mansi Gupta About the author:
Mansi gupta recommends you visit Economic Indicators for more information on Economic Indicators.

Economic indicators are regularly released governmental statistics that indicate the growth and health of a country especially its economy. Economic indicators mostly influence the value of a country’s currency. These are key statistics that show the direction of the economy. The Trade Deficit, the Gross National Product (GNP), Industrial Production, the Unemployment Rate, Inflation Rate, Factory Utilization Rate and the Business Inventories are instances of economic indicators.

Use Economic Indicators

Economic indicators are used to analyze the economic behavior of a country and predict the manner in which economy will act in near future. On the basis of types of predictions economic indicators are of three kinds:
· Coincident economic indicator
· Leading economic indicator
· Lagging indicators

A coincident economic indicator happens in tandem with an economic event. This indicator occurs at approximately the same time as the conditions they signify. The paradigm instance of it is company payrolls. These payrolls are coincident indicators because they make payment and simultaneously increase the localized economy. Personal income is also a coincidental indicator for the economy. High personal income rates will coincide with a strong economy. The coincident indicators do not predict future events but change with a change in time and economy of the stock market.

A lagging indicator is one that follows an event. This indicator is an event, which happens after the corresponding economic cause occurs just like the amber light is a lagging indicator for the green light as amber trails green. The unemployment rate of a country is an example of a lagging indicator because as the economy is doing badly or companies are expecting a downturn in the economy, the unemployment rate increases accordingly. Media is also a lagging economic indicator for the news is always reported few hours before the actual economic fluctuation that they point to. A lagging indicator is immensely significant because of its ability to confirm that a pattern is happening or about to occur.

Leading indicators are events that take place right before an economic shift. The leading indicators are instrumental in forecasting future events. The leading indicators exhibit immense accuracy in the world of finance. An example of leading indicators is the bond yields. Bond yields are leading indicators of the stock market because on behalf of these bond traders anticipate and further course of the stock market and economy of the country.

However in economics the classification of several factors is subject to debate. For instance according to some people the Federal Reserve is a leading indicator while for others it is a lagging indicator. The trend of the market indicates either that the market reacts to the Federal Reserve changing interest rates or that the Federal Reserve changes interest rates only in response to the market. Seeing practically the Federal Reserve can be viewed as both a leading and lagging indicator.

Every week dozens of economic surveys are conducted and several economic indicators are released. In order to understand the current and future of the market and so enjoy a successful business, it is very important for all the investors to crack the economic indicators skillfully.

When we review the sites of potential clients, there are 2 mistakes we see over and over. If you are having problems with your site, make sure these 2 problems aren’t killing you.

Traffic

Just because you think something is a good idea doesn’t mean the general public agrees. A web site should solve a problem that is common to some part of the population. If people have a problem, they will be compelled to find an answer to it. If they don’t, they are not going to visit your site for anything other than browsing. Browsing doesn’t pay the bills!

Do the research on Overture or your favorite tool. If there isn’t a significant amount of monthly searches for your topic, move on to another one. If you think you can both alert people to a problem and solve it, you are in for a difficult time. It can be done, but your chances of success are pretty small.

Database Parameters

If you have a database driven site, you absolutely must get control of the sub-domains. Examples of database sites include sites selling products or providing some version of a listing service such as real estate or jobs. Programmers and designers have a bad habit of putting session ids in the sub-domains. Session ids are an indication of dynamic pages, pages that are built on the fly when the domain is triggered. A dynamic domain looks something like:

your domain name .com/default.cfm?sid#####LLLLaaa#####

The problem with dynamic domains concerns search engine robots. A robot is designed to recognize the meta tags and content of a page. The robot will then include the page in the search database. Robots often refuse to index dynamic pages because the robot cannot predict the content on the page. From the robot’s view, the page could show different things each time it is accessed. As a result, the search engines can’t list it under any particular keyword with any confidence that the content will be relevant to the search. If you have dynamic pages, most of the pages of your site will never appear in Google, Yahoo and MSN. That’s a disaster.

Planning is the key to setting up a profitable e-commerce site. Make sure you are solving a known problem and set your site up to be friendly to the search engine robots.

Halstatt Pires.