Microsoft sees ad growth, shrugs at yahoo

Microsoft will get along in the online ad space, with or without Yahoo under its wings. That was one message conveyed in this afternoon's earnings call with investors. The company's Q1 consequence pleased analysts, though its net net income fell to $4.39 one million million.

"With or without a Yahoo acquisition, Microsoft is focused on the online advertising marketplace," said SVP and CFO Chris Liddell, mirroring remark made before this week by Microsoft's CEO Steve Ballmer.

Microsoft reported $843 million in gross from its Online Services division in the one-fourth ending March 31, up 40 percentage from the $603 1000000 collected the same one-fourth 2007. The $843 1000000 included gross derived through its aQuantive acquisition.

Online ad dollars were also up one-fourth over one-fourth, and the firm predicted online services revenues will grow 37 to 41 percentage next one-fourth.

Liddell expressed impatience with Yahoo's resistance to Microsoft's $44.6 billion acquisition bid for Yahoo, made in Feb. "Speed is of the kernel for the deal," he said. "unluckily, the dealing has been anything but speedy."

Microsoft will "remain disciplined" in its stern attack to the proposed acquisition, he said, denying Yahoo's stance that the master bid undervalues Yahoo's worth. Liddell pointed to Yahoo's decreasing hunt market share, suggesting its contention that Microsoft's offer should be higher "simply" because the software system giant can afford it "is not one that I favor."

Liddell hinted an proclamation regarding the Yahoo bid will come next week, and suggested the company would consider withdrawing its proposal.

Regarding its less embattled aQuantive acquisition, Liddell said 96 publishers have switched over to using the ad tech firm's Atlas ad direction system since Microsoft took over. He suggested staff integrating is hum along, and noted "all key" executive director at aQuantive have remained with the firm since the deal closed in Aug 2007. "We've integrated, in my view, the civilization very well," he said.

Microsoft reported Q3 operating income and diluted earnings per share of $14.45 billion. It took in $13.4 billion in net income in the first three quarters of its '08 fiscal year, compared to $11 billion for fiscal 2007. The company expects earnings per share growth of around 35 percent by the end of this fiscal year.