Microsoft CEO seeks to reassure analysts

Microsoft Corp. Chief Executive Steve Ballmer conceded that there are questions about the software maker's future, but he sought to reassure financial analysts that the company can compete against Web-focused competitors.


Above is the logo for Microsoft at their office in Herndon, Virginia. Microsoft confirmed rumors it planned to launch an "iPod killer," saying its challenge to Apple Computer's dominant MP3 player would hit the market this year.


Still, in a sign of how nervous Wall Street is about the company's prospects, Microsoft shares dipped 2 percent after another executive said a new version of its Windows operating system is on track to be completed as planned, but cautioned that could change if quality concerns arise.

Balmer said ..."The opportunity and prospects for innovation and growth has never been better.". His comments came as Microsoft is facing intense competition, particularly from Google Inc., Yahoo Inc. (Nasdaq:YHOO - news) and other companies that are increasingly offering software and related services over the Internet to both consumers and businesses.

The new versions of both Office and Windows — the company's cash cows — have been delayed. And Microsoft has conceded that its plans to compete and expand into new businesses will be extremely costly.

Kevin Johnson, co-president of the Microsoft division that includes Windows, said the company appears to be on track to ship the new version of Windows to businesses in November and consumers in January. But he made clear the company would not hesitate to again delay Windows Vista, which is already years overdue, if further problems crop up. "We will ship Windows Vista when the product is ready," he said. "Product quality is job one."

Microsoft shares fell 50 cents or more than 2 percent to close at $23.87 in trading on the Nasdaq Stock Market after the words of caution made investors jittery.

Analyst Roger Kay with Endpoint Technologies Associates said he thought Microsoft was trying to tell analysts to be patient as it makes investments needed to grow.

"I think they're trying to gain the sympathies of this population so that they don't get punished too badly for going into investment mode," he said.

My dear dear dearestttttttt Microsoft....Where r u heading?????????