Ballmer leaves investors speechless in Seattle

He won't go quietly, huh


The pressure must be getting to Microsoft's very own bald eagle Steve Ballmer as he issued a stinging public rebuke - for the first time - to dissenting investors calling for his head, and used the soon-to-be released fiscal 2011 results to back up his reputation.

According to reports in the Seattle Times, Microsoft's CEO shouted at a captive audience attending a civic bash in the city's Rotary Club yesterday.

"You tell me if I lack energy, conviction or we're not driving change we need to drive," he bellowed.

Calls for Ballmer to quit the firm have been growing in recent weeks - including from high profile hedge fund bigwig David Einhorn, president of Greenlight Capital - given the firm's share price stagnation, and IBM and Apple's overtaking it in terms of market capitalisation.

The nine-strong board continues to support him.

To justify his top seat, Ballmer then gave a sneak preview of Microsoft results for the year ended 30 June, not due to be published for some weeks yet.

"There's a reason why we'll do almost $70bn in revenue this year and we'll make over $20, whatever, $26, $27bn in profits," he added.

Redmond then clarified post-event to the ST that the big cheese was actually referring to operating profits of $26bn to $27bn, slightly lower than analyst estimates of $27.2bn and sales of $69.8bn.

Microsoft refused to comment. ®

Similar topics


Other stories you might like

  • Uncle Sam to clip wings of Pegasus-like spyware – sorry, 'intrusion software' – with proposed export controls

    Surveillance tech faces trade limits as America syncs policy with treaty obligations

    More than six years after proposing export restrictions on "intrusion software," the US Commerce Department's Bureau of Industry and Security (BIS) has formulated a rule that it believes balances the latitude required to investigate cyber threats with the need to limit dangerous code.

    The BIS on Wednesday announced an interim final rule that defines when an export license will be required to distribute what is basically commercial spyware, in order to align US policy with the 1996 Wassenaar Arrangement, an international arms control regime.

    The rule [PDF] – which spans 65 pages – aims to prevent the distribution of surveillance tools, like NSO Group's Pegasus, to countries subject to arms controls, like China and Russia, while allowing legitimate security research and transactions to continue. Made available for public comment over the next 45 days, the rule is scheduled to be finalized in 90 days.

    Continue reading
  • Global IT spending to hit $4.5 trillion in 2022, says Gartner

    The future's bright, and expensive

    Corporate technology soothsayer Gartner is forecasting worldwide IT spending will hit $4.5tr in 2022, up 5.5 per cent from 2021.

    The strongest growth is set to come from enterprise software, which the analyst firm expects to increase by 11.5 per cent in 2022 to reach a global spending level of £670bn. Growth has fallen slightly, though. In 2021 it was 13.6 per cent for this market segment. The increase was driven by infrastructure software spending, which outpaced application software spending.

    The largest chunk of IT spending is set to remain communication services, which will reach £1.48tr next year, after modest growth of 2.1 per cent. The next largest category is IT services, which is set to grow by 8.9 per cent to reach $1.29tr over the next year, according to the analysts.

    Continue reading
  • Memory maker Micron moots $150bn mega manufacturing moneybag

    AI and 5G to fuel demand for new plants and R&D

    Chip giant Micron has announced a $150bn global investment plan designed to support manufacturing and research over the next decade.

    The memory maker said it would include expansion of its fabrication facilities to help meet demand.

    As well as chip shortages due to COVID-19 disruption, the $21bn-revenue company said it wanted to take advantage of the fact memory and storage accounts for around 30 per cent of the global semiconductor industry today.

    Continue reading

Biting the hand that feeds IT © 1998–2021