Make Way for Microsoft

Naturally, the guarantee also affects the overall top line. The company expects revenue of $11.8 billion to $12.4 billion in the quarter, which would be flat with the year-ago period. But that excludes $1.5 billion in deferred guarantee money. If the forecast is accurate, total revenue will be the equivalent of $13.5 billion to $13.8 billion, or growth of 12% to 17%.

On the bottom line, Microsoft expects an EPS of 22 cents to 24 cents a share, which is 29% to 35% below the 2006 quarter. But adding back 11 cents to reflect the guarantee moves the needle to an EPS of 33 cents to 35 cents a share.

Wall Street, which is well aware of the issue, is looking for an EPS of 23 cents on total revenue of $12.07 billion.