Reported by Star-Bulletin staff & wire
Thursday, April 23, 1998
Microsoft beats Street but warns of slow growth
SEATTLE, A.P. -- Microsoft Corp. late yesterday reported another record quarter for revenues and net income. But the world's largest maker of personal computer software also warned revenue growth was its lowest in two years and will likely slow further this year.Saturated markets, the Asian economic slump, cheap computers and Microsoft's sheer size were among the reasons company officials cited for the warning of a slowdown.
Microsoft reported a 28 percent increase in quarterly profit, beating Wall Street expectations, as revenue grew 18 percent. It earned $1.34 billion, or 50 cents per share on a diluted basis, in its fiscal third quarter ended March 31. That was up from a profit of $1.04 billion, or 40 cents per share, in the year-ago quarter. Revenue rose to $3.77 billion from $3.21 billion.
Microsoft cited strong sales of its Office software and growing demand for its Windows NT operating system for networks of computers, and its BackOffice applications.
30-year mortgages fall to 7.15 percent
WASHINGTON -- The average rate on 30-year fixed-rate mortgages fell to 7.15 percent this week, from 7.17 percent last week, the Federal Home Loan Mortgage Corp. said today.Fifteen-year mortgages averaged 6.78 percent this week, down from 6.81 percent last week. One-year adjustable-rate mortgages had an average initial rate of 5.64 percent, down from 5.67 percent and the lowest in 10 weeks.
Bank: Asian crisis likely to get worse
LONDON -- The Asian crisis will shrink the economies of Thailand, Indonesia and South Korea this year, slowing growth around the world, the Asian Development Bank said today in the latest warning about the region's troubles.Although a strong Chinese economy will bolster the region, recent big swings by Asian stocks probably will soon tempt speculators to try to devalue the Hong Kong and Chinese currencies on foreign exchange markets, the Manila-based development bank warned. Southeast Asia's troubles are so severe that more coordinated assistance from the world's big economies and international financial institutions will be necessary, the bank concluded in its annual Asian Development Outlook.
In other news . . .
NEW YORK -- Mellon Bank Corp. moved quickly to block Bank of New York Co.'s $22.9 billion unsolicited takeover bid, suing the company for using inside information. Mellon, in papers filed in U.S. District Court in Pittsburgh, said Bank of New York "misappropriated confidential and non-public information" gathered during merger talks with Mellon that broke down in December. It asked the court for an injunction to block the bid.
See expanded coverage in today's Honolulu Star-Bulletin.
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