Surprise! Microsoft Says No Overtime for Office XP

In an uncharacteristically punctual move, Microsoft (MSFT Quote) announced Monday that it completed its Office XP software on schedule. The tech giant, notorious for delaying important product launches, is expected to make the latest Office version available to corporate customers as early as next month and to retail customers by June.

The right-on-time completion of the popular word processing, spreadsheet and email suite is good news for Microsoft, because it will give the company a much-needed revenue boost in the September quarter. With corporate technology-spending growth slowing, and PC sales in a double-digit drop-off, Microsoft needs the lift.

"That it will be released on time gives us more confidence in their ability to make estimates for upcoming quarters," said Crowell Weedon analyst Jim Ragan, who rates Microsoft a buy. (His firm hasn't done any underwriting for Microsoft.)

Office, one of Microsoft's traditional money magnets, accounted for 35% of the company's $23 billion in fiscal 2000 revenue and is expected to pull in about the same this fiscal year, according to Ragan. With its collaborative tools and added Internet functionality, Office XP is in line with Microsoft's .NET strategy, a plan to eventually sell all of its software via the Internet as a service rather than a shrink-wrapped product. ...