Microsoft expects to show that it will recover from a recent sales slump when the world"s largest software maker reports details of early orders this week for its next Windows version set to launch next year Along with quarterly results, Microsoft on Thursday will report unearned revenue, which reflects long-term contracts on the balance sheet that have been signed but not recognized as income.
"This will be first quarter where the unearned revenue sees a meaningful impact from the prospect of significant new products," said Jamie Friedman, analyst at Fulcrum Global Partners. Wall Street began focusing more closely on unearned revenue after Microsoft began encouraging customers to sign long-term contracts for products in its pipeline.