The article I reviewed was featured on usatoday.com. It was called "Upgrades lower Microsoft profit, but results beat forecasts". The article stated that on Friday Microsoft's net income fell 18% in the last quarter because it deferred revenue when it let summertime PC buyers get free upgrades to Windows 7, which was released this week.
Investors looked past the accounting decision because if it had counted its deferred Windows revenue, Microsoft's earnings would have increased 8% from last year witht he help of big cost cuts.
The article also stated the upgrade program, which let people buy a PC with Windows Vista and later install Windows 7 for free, meant that Microsoft counted only half of its Windows sales in the period.
Because analysts now think many businesses will start buying new computers and other technology again in the middle of 2010, our group invested in Microsoft with the assumption that the new program would be successful after it was released on October 22, 2009.
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