Microsoft Slips as Merrill Trims Estimates

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Microsoft (MSFT) - Get Report was down 0.9% in preopen Island trading after Merrill Lynch said it was reducing current quarter and fiscal 2002 estimates.

Merrill said deteriorating economic conditions following the terrorist attacks Sept. 11 will impact PC unit sales and cut into Microsoft's revenue.

Merrill said it now expects 2002 revenue to be $28.2 billion, down from $29.2 billion previously estimated.

Analysts expect the company to earn $1.89 a share in fiscal 2002, on revenue of $28.7 billion, according to Thomson Financial/First Call.

Merrill's action follows a similar move by Goldman Sachs on Monday.