Vista sales expectations too optimistic, Ballmer says

Microsoft Corp. Chief Executive Steve Ballmer said Thursday that Wall Street’s current expectations for revenue from its newest operating system may be too “optimistic.”

“I’m really excited about how enthusiastic people are about Vista, but I think some of the revenue forecasts for Vista in 2008 are overly aggressive,” Ballmer said in a meeting for financial analysts. “(Vista) is primarily a chance to sustain what (Windows) revenue we have — not every release is a revenue growing opportunity.”

The excitable CEO declined to disclose specific financial guidance, but Ballmer did say he expects 2008 operating expenses to grow by less than the $2.7 billion increase in 2007.

“How much less? We’ll say somewhat less. We’re moderating growth in operating expenses, but I would not expect a huge drop — just a small drop.”

Ballmer also responded to a question about a series of commercials made by smaller computer maker Apple Inc. The ads poke fun at Microsoft, the world’s largest software company, through a geeky character who calls himself a “PC.”

“I’ll give Apple credit for what it’s done,” Ballmer said. It’s not like they’ve really grown a lot of market share (through the commercials). Remember, when you’re the little tiny niche guy who owns about 2 percent of the worldwide (computer) market, you can be cute one time and it helps you grow.”

•FamilyMeds Group Inc. said Thursday it has agreed to sell all of its pharmacies to Walgreen Co. and other pharmacy operators for $79 million as part of the company’s dissolution plan.

Familymeds operates corporate pharmacies and pharmacies near medical facilities. The company also runs an online pharmacy.

•The stock of Salary.com Inc. got a handsome raise Thursday in its first day of trading.

By the end of the day, the shares had risen $2, or 19 percent, from their initial public offering price of $10.50. The shares trade under the symbol “SLRY” on the Nasdaq Stock Market.

The Waltham, Mass., company keeps track of employee compensation for about 1,700 subscriber companies, including a number of high-profile names such as Wal-Mart Stores Inc. and Home Depot Inc.

The company’s Web site is attracting an average of more than two million unique monthly visitors over the nine months through September 2006, according to Salary.com’s prospectus.