- The better-than-expected level of deferred revenue is probably a harbinger of strong sales for the new versions of the company's cash cows -- Windows Vista and Office 2007.
- Microsoft did blow away its own projections for sales of the Xbox 360 game console, although there is confusion over the company's decision to cut sales guidance for the game console over the rest of the year .
- Sales of enterprise products, historically not the company's strongest suit, continue to improve, while the online unit is still underperforming.
Microsoft ( MSFT) didn't blow the doors off the hinges Thursday -- it didn't have to. The company's
solid second quarter answered the most important question facing it and set the stage for a slow but steady appreciation of the stock. Analysts looking at the quarter and the software giant's guidance for the rest of 2007 say the following: