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Microsoft disappoints

A technician for Comcast heads out on a job in Salt Lake City file photo. Comcast Corp., the nation's largest cable TV operator, said its net income for the first quarter more than tripled. (Associated Press / The Spokesman-Review)
Associated Press The Spokesman-Review
A technician for Comcast heads out on a job in Salt Lake City file photo. Comcast Corp., the nation's largest cable TV operator, said its net income for the first quarter more than tripled. (Associated Press / The Spokesman-Review)

Microsoft Corp. said its quarterly income rose 16 percent, but the results fell shy of Wall Street expectations and the software company offered a tepid outlook Thursday for the current quarter.

Company shares fell nearly 6 percent in late trading.

For the three months ended March 31, the Redmond software maker reported earnings of $2.98 billion, or 29 cents per share, compared with $2.56 billion, or 23 cents per share, in the same period a year earlier.

The most recent results included a charge of 3 cents per share for legal expenses. However, the company said that, without rounding, it actually earned 28.6 cents per share and took a charge of 2.6 cents per share. That means that it would have earned 31 cents per share without the one-time item.

Revenue for the three-month period was $10.9 billion, a 13 percent increase over sales of $9.62 billion a year earlier.

Analysts polled by Thomson Financial were expecting earnings of 33 cents per share, on revenue of $11.04 billion.

Microsoft shares rose 15 cents to close at $27.25 in trading Thursday on the Nasdaq Stock Market. In after-hours trading, shares fell $1.58, or 5.8 percent. The results were released after the markets closed.

Shares have traded between $24.25 and $28.38 over the past year.

•Red Lion Hotels Corp., of Spokane, trimmed its first-quarter loss to $3 million, or 22 cents a share, compared with a loss of $3.1 million, or 24 cents a share, in the year-ago quarter.

Revenue per available room, a measure of financial health in the hospitality industry, increased 8.7 percent over the first quarter of 2005 for hotels owned, leased, managed and franchised by Red Lion for at least a year.

Red Lion said in its earnings announcement that it has completed the renovation of 11 of 31 of its hotels as part of a $40 million program announced more than a year ago. The company also said it completed during the first quarter the sale of the Executive Court portion of the Ridpath hotel in downtown Spokane to a group of Spokane investors.

The company reported total revenues of $36.6 million, up 3 percent from revenues of $35.5 million in the first quarter a year ago.

•Blockbuster Inc., the nation’s largest movie-rental chain, cut its first-quarter loss sharply from a year ago and posted its first gains in U.S. same-store rentals in three years.

However, overall revenue tumbled nearly 8 percent as the chain closed some stores and reduced low-margin merchandise such as older movies.

Blockbuster officials and analysts said the company focused on improving profitability, even if it meant sacrificing sales.

•Comcast Corp., the nation’s largest cable TV operator, said Thursday its net income for the first quarter more than tripled, buoyed by strength across all its business lines including once-lagging digital voice.

The Philadelphia-based company earned $466 million, or 22 cents a share, in the latest quarter, compared with $143 million, or 6 cents per share, in the same period a year ago. The most recent quarter also got a boost from an investment gain of $64 million.

•Dow Chemical Co. on Thursday posted a 10 percent decline in first-quarter earnings as the rising cost of raw materials offset a modest gain in sales.

Net income fell to $1.21 billion, or $1.24 per share, from $1.35 billion, or $1.39 per share, in the prior-year period. But the company reiterated its belief that 2006 will be better than last year.

First-quarter sales increased 3 percent to $12.02 billion from $11.68 billion a year ago on slightly higher prices.

•GlaxoSmithKline PLC, the world’s second largest drugmaker, said Thursday that strong sales propelled double-digit earnings growth in the first quarter as did its British rival AstraZeneca PLC, which raised its earnings outlook for the year.

Sales rose 15 percent to 5.81 billion pounds ($10.4 billion) thanks to strong revenues from asthma drug Advair/Seretide, diabetes treatment Avandia/Avandamet and the vaccines unit.

•Kellogg Co., led by an 8 percent increase in North American sales, on Thursday reported that its first-quarter profit also grew 8 percent, beating Wall Street’s expectations.

The nation’s largest cereal maker also increased its earnings guidance for the year.

Kellogg’s profit climbed to $274.1 million, or 68 cents per share, compared with $254.7 million, or 61 cents per share, during the same period last year. Revenue rose 6 percent to $2.73 billion from $2.57 billion last year.

•Office supplies retailer OfficeMax Inc. on Thursday posted a sharply wider first-quarter loss as costs from closing more than 100 stores weighed on its results.

The Itasca-based company’s loss amounted to $25.1 million, or 37 cents per share, versus a loss of $5.3 million, or 7 cents, the year before. Excluding store closing costs and other items, adjusted profit was $55.7 million, or 77 cents per share.