Ballmer cautions on sales of Vista

SEATTLE —  Microsoft Corp. Chief Executive Steve Ballmer said Thursday that analysts’ forecasts for revenue from Windows Vista in fiscal 2008 were “overly aggressive,” sending shares down 1.2%.

The world’s biggest software maker cautioned analysts that Vista sales would remain closely aligned to new computer sales. Ballmer said Vista would create a “small surge” in PC sales in fiscal 2008, but would not spur a big increase over normal growth rates.

“It looks like people are a little bit over optimistic, at least more optimistic than we are,” Ballmer said in a presentation to analysts.

In January, Microsoft made available to consumers the newest version of its Windows operating system, called Vista. Windows runs on more than 95% of the world’s computers and represents the company’s biggest profit driver.

Analysts on average expect Microsoft to generate sales of $56.4 billion in fiscal 2008, which starts July 1, which would be an increase of 12% from this year’s estimates, according to Reuters Estimates.

Earnings per share are expected to rise 15% to $1.69 in fiscal 2008.

Ballmer also forecast that Microsoft’s fiscal 2008 operating expenses would be “somewhat less” than the previous year, probably a bit below $2.7 billion.

“We will have moderating growth in operating expenses next year, but I wouldn’t expect a huge drop,” Ballmer said.

Last year, Microsoft shares fell sharply after the company disclosed a plan to increase spending to beef up its online business.

Shares of Redmond, Wash.-based Microsoft dropped to $29.10 in extended trading after closing at $29.46, down 6 cents, in regular trading.