Hasta La Gadget!

Microsoft’s Windows division has been on something of a roll recently, but a deeper look into the company’s financials seems to indicate that the reported numbers might look better than reality. Information Week has done some deep digging into Microsoft’s recent SEC filings and found that several bookkeeping changes resulted in significantly increased reportings of profits in the company’s Windows division. Revenues that had been assigned in previous quarters to other divisions within the company — mostly the Entertainment and Devices unit which includes highly successful businesses such as Xbox — were, in this past quarter, re-assigned to the Windows operating system division.

So just how much money was moved? Well, according to Information Week and the relevant SEC filings statements, about $259 million, or a boost of 6.5% in profit to the division overall for a total of $4.24 billion rather than the $3.98 billion originally stated for Q1 2010. This also resulted in a 25% reduction in profits for EDD, while the total profits — $12.92 billion — stayed exactly the same. Of course, all these bookkeeping maneuvers mean that Redmond’s Windows division looked like it was making a decent amount more cash than it actually was, and when taking into account another complex move — that of deferring $1.5 billion in upgrade revenues from Windows Vista machines sold in Q4 2009 to Windows 7 in Q1 2010 — the resulting picture is a bit different than it would appear on the surface. Ultimately, it looks like Microsoft raked in an 11% increase in Windows profits rather than the 66% reported, when removing both the bookkeeping changes from other units and the upgrade deferrals. Of course, this is all apparently technically on the up-and-up, in terms of financial reporting is concerned, but it does give some insight into the stunning profits recorded in the Windows division as of late.

Microsoft accounting shuffling resulted in higher sales for Windows division originally appeared on Engadget on Mon, 15 Nov 2010 17:10:00 EDT. Please see our terms for use of feeds.

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Apple ratchets up expectations by mysteriously promising that tomorrow will bring an iTunes announcement and be a day “we’ll never forget.”

Originally posted at Circuit Breaker

“Stoopid Andy”–not as stupid as his name implies (TM)–joins us on the show today along with MTI, otherwise known as Mark Licea, to fill in for Justin, who again is enamored by a printer.

He's debonair.

(Credit:
Wilson G. Tang/CBS Interactive)

You may not realize this, but Stoopid Andy is a bit of a computer genius. We spend a good portion of the first half of the show talking about how he transcodes Blu-ray movies that he owns over to an MKV file in H.264 using a variety of pieces of hardware and software. He does this just so that he can watch his movies in HD and Dolby Digital surround sound anywhere in his house. Kind of cool. But I think most consumers would rather just watch it on Netflix or rent it from iTunes.

Speaking of iTunes, Apple has changed the home page of its Web site with a mysterious message that reads: “Tomorrow is just another day. That you’ll never forget. Check back here tomorrow for an exciting announcement from iTunes.” As much of a fanboy as Wilson is, he’s got nothing when it comes to speculation other than the rumors that have already been floating around the Web. We’re hoping for iTunes music subscriptions or more streaming-media services from the cloud. We’re going to be really disappointed if it is just the already announced iOS 4.2 download or the iTunes 10.1 download.

Facebook’s new messaging service press conference started just right after the show was over today, so we don’t have much feedback on that, except that tweens will certainly embrace it. We also mention that Wal-Mart will be offering free shipping to all its orders between now and December 22, but it’s a little odd for everyone in the studio because there isn’t a Wal-Mart within New York City!

Finally, we don’t have time to get to the voice mails, but Wilson does point out that Jeff is dearly missed, and will hopefully be making his return tomorrow! *fingers crossed* He may have just decided to stay in sunny Hawaii and finish playing Call of Duty: Black Ops. You can leave him a message by calling 1-866-404-CNET (2638) or e-mail us at the usual address. Oh! And tell your friends about the show!

Episode 709

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Though Sanjay Jha is clearly the more visible of Motorola’s two co-CEOs, it was his stealthier counterpart, Greg Brown, who mentioned during an analyst conference today that they’re looking to wrap up the company’s split in January of next year. Brown had already been tapped to head up Motorola Solutions — one half of the post-split aftermath with $5.3 billion in cash and $2.9 billion in debt — and he’s saying that his company’s independent identity “effectively starts today.” The handset guys over at Motorola Mobility, meanwhile, have been filing devices with the FCC under their post-split name for a while, but let’s be honest: we’re still going to know all this stuff as “Motorola”… and that’s probably exactly how they want it.

Motorola targeting January to finalize split originally appeared on Engadget on Mon, 15 Nov 2010 15:39:00 EDT. Please see our terms for use of feeds.

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Ready or not, Comcast and NBC will walk down the aisle in matrimony — but it’ll not be without a few conditions. According to The Wall Street Journal, both the FCC and the Justice Department are expected to impose conditions on how NBC online video is distributed online, to ensure the cable operator (with online video distribution channels of its own) doesn’t withhold or threaten to withhold NBC Universal content from rivals — both Netflix and Apple are specifically cited by WSJ. The FCC is additionally considering restrictions on Comcast slowing down / blocking “legal traffic” from its internet network, maintaining a pro-net neutrality stance. Chairman Julius Genachowski is currently meeting with staffers twice a week on the deal, with the timetable of circulating proposed conditions by mid-December — narrowly avoiding sweeps week, unless 30 Rock has an idea or two up its Kabletown-owned sleeve.

FCC, Justice Department look to prevent Comcast from hogging NBC’s online video all for itself originally appeared on Engadget on Mon, 15 Nov 2010 15:12:00 EDT. Please see our terms for use of feeds.

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