On Jan. 26, Microsoft (NASDAQ:MSFT) released second-quarter 2006 earnings for the period ended Dec. 31, 2005.

  • Its top-line growth was driven by strength in the server and tools segment -- which includes its SQL Server database product -- where revenue grew 14%.
  • There was a net decline in operating income despite stronger sales, largely the result of an incrementally higher allocation of sales and marketing expenditures as a percentage of revenue.
  • Net income was pushed higher by investment income (as a percentage of revenue) and a $0.01 tax benefit, resulting in a lower effective tax rate.
  • On Thursday, the company offered rivals access to some source code for its Windows operating system, in an effort to comply with continuing European Union antitrust litigation. This bears watching, since similar actions might weaken Microsoft's grip on its markets.

(Figures in millions, except per-share data)

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Related Companies:

  • Google (NASDAQ:GOOG)
  • Oracle (NASDAQ:ORCL)
  • Apple (NASDAQ:AAPL)
  • Intel (NASDAQ:INTC)

Related Foolishness:

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