April 23, 2004

Microsoft Corp reports solid quarterly gains in revenue and operating income, providing further evidence of increased demand for personal computers in both consumer and corporate markets; net income is held down by series of one-time payments, including nearly $2 billion to settle its legal disputes with Sun Microsystems and $603 million for fine imposed by European Commission; for third quarter that ends March 31, Microsoft earns $1.3 billion, down from $2.14 billion a year earlier; revenue rises 17.1 percent, to $9.18 billion (M)

Japanese civilians taken hostage in Iraq are reviled on their return to Japan and have gone into hiding, effectively becoming prisoners inside their own homes; are accused of acting selfishly in pursuing their individual goals, defying government advisory against travel to Iraq and causing trouble for Japan; government says it will bill them $6,000 for their return air fare; former hostages--Nahoko Takato, Noriaki Imai, Soichiro Koriyama, Junpei Yasuda and Nobutaka Watanabe--are nevertheless praised by Sec of State Colin L Powell; photos (M)

Maine's pension fund puts portion of its money into bonds that pay low interest rate but whose values will rise or fall in tandem with value of pensions state must pay its retirees, no matter what markets do; bonds' durations match scheduled payouts to retirees; it is contrarian approach, but one that Maine thinks best serves its retirees and taxpayers; state is first in US to embrace concept of pension matching (M)

Equal Employment Opportunity Commission votes to allow employers to reduce or eliminate health benefits for retirees when they become eligible for Medicare at age 65, ruling that such cuts would not violate civil rigths law banning age discrimination; 12 million Medicare beneficiaries now receive health benefits from their former employers for expenses not covered by Medicare; employers and some labor unions support change, saying, along with several commission members, that it will encourage employers to continue coverage for early retirees; AARP strenuously objects and contends commission does not have authority to create such exemption; photo (M)

Charles B Wang, co-founder of Computer Associates, who retired two years ago, is nowhere to be seen as company struggles through federal criminal investigation that has already tarnished its reputation and could seriously damage its business; does not appears to be a focus of prosecutors; photo of Wang with his protege, Sanjay Kumar, who has resigned as chairman and chief executive and is focus of investigation by US attorney's office and SEC (M)