spending dip, but an installed base that's rejecting its software subscription plan.
The drop in unearned revenue overshadowed Microsoft's strong fiscal first quarter performance, with earnings above Wall Street expectations.
Unearned revenue is deferred revenue for license agreements that is recognized over the life of those agreements. The amount of unearned revenue on
Microsoft's balance sheet dropped US$768 million. This is significantly more than the forecasted decline of between US$200 million and US$300 million.