Microsoft Forecasts a 13-15 % revenue growth in 2007
Microsoft Chief Financial Officer Chris Liddell on Wednesday said the world's largest software company is still expected to grow revenue 13 percent to 15 percent for the current fiscal year. With a sales force of over 16,000 people what will that mean?
Liddell, in comments at a CSFB technology conference, also said that he saw no reason the world's largest software maker would not continue aggressive stock buybacks. Currently Microsoft is ranked #2 by Selling Power Magazine in the top 500 largest sales forces with 16,000 sale reps, trailing only behind Pepsi (which has 36,000). But this ain't cola, this is technology, and with 39 billion in revenue Microsoft is now predicting another $5 billion for 2007?
Will there be more sales people added or will the existing 16,000 fork up the 5 billion by increased quota's? While Microsoft currently has over 31 account manager positions all over the country listed on their website, they also have 13 sales manager openings as well. But heck for a sales force the size of Microsoft- if they experience a 6% turnover in their force every year (average) your looking at replacing 960 sales people every year, PLUS the 2080 people they might need to support a 13 percent revenue growth.
In slides accompanying the presentation, Liddell also forecast fiscal 2007 operating earnings growth of 9 percent to 11 percent and earnings per share growth of 13 percent to 15 percent.
Shares of Microsoft rose nearly 1 percent, or 28 cents, to $29.67 in morning Nasdaq trade.
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