Microsoft Corp. Chief Executive Steve Ballmer has played it safe by saying that Wall Street's current expectations for the company's newest operating system, Microsoft Vista might be too optimistic, leading to a fall in the share prices.

Speaking in a meeting with financial analysts, Ballmer said, "I'm really excited about how enthusiastic people are about Vista, but I think some of the revenue forecasts for Vista in 2008 are overly aggressive. Vista is primarily a chance to sustain what Windows revenue we have, not every release is a revenue growing opportunity. People are a little bit over optimistic, or more optimistic than we are about Windows revenue."

Ballmer complimented Microsoft's main rival, Apple Computers, whose new ads had angered the company. "I'll give Apple credit for what it's done. It's not like they've really grown a lot of market share through the commercial. Remember, when you're the little tiny niche guy who owns about 2 percent of the worldwide computer market, you can be cute one time and it helps you grow."

Ballmer said that the total revenue rise in 2008, which starts on July 1 this year, will be less than the $2.7 billion rise in 2007. "How much less? We'll say somewhat less. We're moderating growth in operating expenses, but I would not expect a huge drop, just a small drop."

Share prices fell by as much as 2.7 percent to recover later at $28.76, down 70 cents or 2.4 percent.

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