To keep track of what’s happening to the tech market, I collect quarterly data on the revenues from more than 70 large IT vendors. Accordingly, I spend an unhealthy amount of time looking at their quarterly earnings releases, analyst presentations, and 10-Q and 10-K reports — making me something of a connoisseur of vendor earnings releases, at least from the perspective of revenues and their breakdown by products and geographies.
From that perspective, Microsoft wins the prize for the most opaque earnings release. First, 2003 was the last time it provided its revenues by geography and its revenues from sales to original equipment manufacturers. Since then, there’s been no data or even guidance on its geographic revenues. Second, it does not break out sales to consumers from sales to business and government, although it does report the growth rates in its sales of Office and its other information worker products to consumers or to enterprises. Third, about every year or so, it re-juggles its product line revenues, shifting product revenues into or out of different product lines. While it generally restates the revenues for the prior eight quarters to bring them into line with its new business unit categories, it doesn’t provide guidance or data on prior years, making comparisons with past years very challenging.
I considered ranking other vendors on the transparency of their earnings releases. But I decided it would be more useful to describe the kind of data that I as a technology analyst — and other vendor strategists analyzing the tech market — would like to get from vendor earnings releases.