bumidan on 17 July 2008
Danger Acquisition
The Danger acquisition most likely contributed a loss for the quarter as well. In the FY ending Sep 2007, Danger made a revenue of $56 million and a LOSS of $28 million.
Even with an increase in revenue in the most recent quarters, most likely the company is still making a loss, as evidenced by R&D expenditure of $24 million attributed by MSFT.
Not only that, the actual business operations of Danger is most likely losing money as well, as these types of companies (start ups) that are acquired by bigger companies usually are.
In this I project a small $15(*) operating loss for the quarter.
