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Thursday, June 4, 2020  Spokane, Washington  Est. May 19, 1883
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Microsoft Profits Jump 90 Percent

By From Wire Reports

Microsoft Corp.’s profits rose nearly 90 percent in the latest quarter, just barely beating Wall Street’s expectations, as the company saved money by shipping more software on CD-ROMs.

In the three months ended June 30, net earnings were $1.06 billion, or 80 cents a share, on $3.18 billion in revenue, compared with profits of $559 million, or 43 cents a share, on $2.26 billion in revenue for the same period last year.

Microsoft said Thursday its costs have been dropping significantly this year because more software is sold on lower cost CD-ROMS than traditional disks. Strong sales of Microsoft Windows and Office applications also helped drive profits, said Michael W. Brown, chief financial officer.

Bob Herbold, chief operating officer, said about 90 percent of its software is now shipped on CD-ROMs, leaving little room for increased savings.

In other earnings reports:

McDonald’s Corp. on Wednesday reported its second-quarter profits rose 4 percent as resurgent overseas sales offset a decline in sales at U.S. restaurants open at least a year.

Net income for the three months ended June 30 rose to $438.2 million, or 63 cents a share, from $420.4 million, or 59 cents a share, in the comparable period a year ago.

The results were a penny below Wall Street expectations, according to a survey of analysts.

Sears, Roebuck and Co. on Thursday reported its second-quarter profits fell 57 percent, weighed down by charges to settle complaints from bankrupt customers that it failed to get court approval for repayment agreements.

Net income for the three months ended June 30 fell to $117 million, or 29 cents a share, from $274 million, or 67 cents a share, in the comparable period a year ago.

The $320 million charge to settle claims from bankrupt customers was partially offset by a $91 million gain from the sale of Sears’ Advantis data services business to IBM and a $35 million gain from the adoption of new accounting standards.

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