Microsoft Goes on the Clock

The last time Microsoft(MSFT Quote) reported earnings, the software giant threw its stock into a tailspin, announcing weaker-than-expected income and much heavier-than-expected spending.

When the company reports fourth-quarter results late Thursday, investors will be waiting to see if the other shoe -- a delay in the already very late next version of Windows -- will drop.

If it does, batten down the hatches: The stock will take another hit.

At least one high-profile analyst, Rick Sherlund of Goldman Sachs, has repeatedly speculated that Vista, as the new operating system is called, will miss its January ship date. But he figures that an announcement of a delay now actually would be a plus because it will get the bad news out of the way and clear the decks for a better 2007. ...