MICROSOFT STOCK REPURCHASE

Microsoft Stock Repurchase

Microsoft Stock Repurchase

Microsoft has reported earnings that were just ahead of analysts' expectations, as company announced the plan to buy back as much as an extra $40 billion worth of its stock. Microsoft would buy back $20 billion through the tender offer set to be completed on December 17th. The company said that its board of directors has also authorized company to buy back up to $20 billion worth of stock through June 2011. The company said it has completed $30 billion stock buyback announced in 2008 (www. invest.com).

For its initial offer, Microsoft is using what is known as the modified Dutch auction, in which those who want to sell shares can indicate how many shares they want to sell and at what price. Microsoft said it will pay no more than $24.75 per share and not less than $22.50. The buyback offer, which is expected to begin Friday and run through Aug. 17, could see software maker repurchase up to 808 million shares, or about 8.1 percent of all outstanding shares (www.zdnet.com).

On earnings front, software maker said it earned $2.3 billion, or 28 cents per share, on revenue of $11.8 billion, for three months that ended June 30. That compares with earnings of $3.7 billion, or 34 cents per share, on revenue of $10.2 billion for same quarter the year ago.

The past quarter's outcomes encompassed legal allegations that dented earnings by 3 cents per share. Excluding charge, earnings were the penny better than 30 cents per share expected by Wall Street analysts and forecasted by company in April. However, that outlook was the shock to analysts and investors, as Microsoft detailed plans to spend more to better compete against Google, among other things (www. invest.com).

Microsoft's sales growth for past quarter was ...