Microsoft posted 3rd quarter earnings of $0.30/share [$0.24 to account for the company’s new compensation program] that were slightly higher than first call consensus estimate of $0.28/share. “But the company’s unearned revenue, representing sales that have been booked but not yet recognized, fell $768 million in the quarter, about $450 million more than the company had expected…” The stock price has been falling due to this surprise and disappointment.

K.C. Ho