The company’s profits rose for the quarter based on strong PC sales in
developing markets and rising demand from corporate customers. The company
reported a net profit of $4.3 billion, or 46 cents a share, in its fiscal fourth
quarter ended June 30, versus a profit of $3.04 billion, or 31 cents, in the
same period a year ago.
Analysts said the company’s business appeared sound, but that it appeared to have lost control of expenses during the quarter.
“Where did they spend all this money?” said Brendan Barnicle, a financial analyst at Pacific Crest Securities in Portland, Ore. Sales and marketing, cost of revenue and research and development were all above what analysts had predicted, he said. “This was significantly higher than people expected.”
