As 2008 kicks off, Microsoft has its financial house decked out, with fiscal 2007 revenue up nearly 16% and profits up more than 16.5%. Even though its cash reserves have dropped from $60 billion in 2004 to $37 billion in 2007, the company is able to use acquisitions to keep up when R&D falls behind. Still, Microsoft has a host of challenges staring it in the face, including the challenge represented by the familiar, bespectacled mug of its founder.
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