Profit Lags as Microsoft Spends to Meet Competitors (NYT)
It’s been awhile since Microsoft had any good news for the street. For years the company’s flat-lined as promises of growth always seemed to be one year around the corner. Well, the company still isn’t growing on the profit front. Major costs related to the XBOX bit hard into the company’s typically fat margins. But revenue was up a solid 16% over the previous quarter, and the company announced huge buybacks over the next several years, which investors always seem to like. For 2007, it pegged its forecast at the high end of analyst expectations. The news was taken well, as the stock rose over 5% after hours.
SEC May Scrap ‘Couric’ Rule On Pay Disclosure
Those in the entertainment business often align themselves against the evils of big business, though of course most of them are as money-hungry as anyone else. It finally took the SEC to expose this, when it put forth executive disclosure regulation that would have required not only CEOs to disclose their pay, but also high-paid actors and entertainers. This of course infuriated Hollywood, which no doubt resented seeing actors lumped in with CEOs. Companies also claimed that it would be bad for business, to have to expose trade secrets in this way. The rule became known as the Katie Couric rule, as it would have certainly exposed how much money she’s making. It appears now that the Katie Couric law will be scrapped, much to the delight of, well, Katie Couric among others. The reason given for the change is that the law is supposed to help investors measure ‘pay-for-performance’. But considering how significant the pay of actors is, and how much doubt there is about an actors ability to turn a film into a hit, it would seem this is a legitimate ‘pay-for-performance’ issue.
Google Piles On Profits (San Jose Mercury News)
While Microsoft showed promise in the same way someone with a broken leg shows promise when they finally go into physical therapy, Google simply continued its sprint. The company blew past expectations yesterday — almost as expected — as it continues to take up market share from internet rivals. This of course sent the analyst community into a lather, as they danced all over each other to talk about how great Google was, and how good this quarter was, and how good they expect the next quarter to be, and how they’re kicking Yahoo’s ass, and how they might kick Microsoft’s ass, etc. It was actually a little embarrassing to watch.
Boeing chief shows his caring side (Airline Business)
Typically the two companies are at each other’s throats, but given the trouble that Airbus is having, even Boeing is stepping in with some words of encouragement. If we were in Boeing’s shoes, we’d of course be gloating. But Boeing veep Alan Mulally said at a press conference, “Don’t give up… New airplanes are hard…we have a lot of compassion with what they’re going through.” That’s honestly one of the nicer things we’ve heard in business, and during cold times such as these at Airbus, it has to make them feel a little better.

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