TECHNOLOGY

MICROSOFT TO DOUBLE RESEARCH SPENDING ON MSN NETWORK The chief executive of Microsoft, Steve Ballmer, says the company is determined to increase online advertising sales. Chairman Bill Gates says it is being “underestimated” in its rivalry with Internet search company Google, the leading seller of search ads.

Microsoft is deadly serious about making a bigger splash online. And it is willing to spend a bundle of money to expand its business. The company said yesterday it will double research-and-development spending on its MSN network to $1.1 billion in fiscal 2007 from $500 million in fiscal 2005.

– Dow Jones Newswires

EBAY TO OFFER SKYPE IN CERTAIN TRANSACTIONS EBay plans to roll out the option to use Skype in its motors, real estate, and jewelry listings, the company’s president and chief executive, Meg Whitman, said yesterday.

Skype Technologies makes software used in having voice conversations over the Internet, and eBay expects Skype to help reduce the “communication friction” in categories that have high prices, Ms. Whitman said during the company’s annual analyst conference, reiterating similar statements that executives made when eBay acquired Skype in October.

Skype is already included in 25% of the listings on eBay’s China site, Ms. Whitman reiterated during the webcast.

In addition, eBay will introduce the ability to send and receive money on Skype later this year, Ms. Whitman said. This will make PayPal more relevant to Skype users, helping both businesses grow, she said. The goal is to make PayPal the “online wallet” for Skype users, Ms. Whitman said.

– Dow Jones Newswires

EDUCATION

TUITION BILLS TOP LIST OF FINANCIAL CONCERNS Rising tuition bills pushed the cost of a college education to the top of a list of affordability concerns for American families, according to a nationwide poll commissioned by a student-aid lobby group. College tuition was cited by 37% of adults, ahead of retirement at 22%, when Americans were asked to name the item “priced beyond the income of the average family,” according to the poll on behalf of the Institute for College Access and Success. Housing costs were third at 20%.

“We need to be cautious about” keeping college affordable, the executive director of the Berkeley, Calif.-based institute, Robert Shireman, said. “There need to be public policies to ensure that they are not excessively burdensome to students after they go to college.”

– Bloomberg News

COSMETICS

ESTEE LAUDER BEATS PROFIT EXPECTATIONS Estee Lauder Companies, the maker of Clinique cosmetics, posted better-than-expected third-quarter profit on increased perfume sales. The shares had their biggest gain in almost nine months.

Net income fell 44% to $59.5 million, or 28 cents a share, from $106.2 million, or 46 cents, a year earlier. Sales rose 3.5% to $1.58 billion, the New York-based company said yesterday in a statement. Excluding one-time items, profit exceeded analyst estimates.

– Bloomberg News

ENERGY

CRUDE OIL FALLS ON REPORT OF RISE IN SUPPLY Crude oil fell more than $2 a barrel after a government report showed that gasoline supplies in America rose for the first time in nine weeks, easing concern that refiners won’t be able to supply enough fuel during the summer months. “Gasoline inventories rose because there was a lift in imports and a flat demand number,” said Bill O’Grady, an analyst with AG Edwards & Sons in St. Louis. “There has yet to be a significant increase in refinery activity and supplies rose. We are seeing gasoline prices rise high enough for consumption to get hit.”

– Bloomberg News

DRUGSTORES

CVS REPORTS 14% RISE IN FIRST-QUARTER PROFIT The drugstore chain CVS Corporation reported yesterday a 14% increase in its first-quarter profit on strong sales growth, easing investor concerns that profits could be diminished by the launch of a complicated federal drug program.

Net income grew to $326.1 million, or 39 cents per share, for the quarter ended April 1, from $286.2 million, or 34 cents per share, a year ago. Revenue rose 9% to $9.98 billion from $9.18 billion last year.

– Associated Press

PHOTOGRAPHY

KODAK CONSIDERS SALE OF UNIT AFTER POSTING A LOSS Eastman Kodak, undergoing a rough transition to digital photography, said yesterday it was considering the sale of its fabled health-imaging business after reporting a $298 million loss in the first quarter – its sixth straight quarterly loss.

– Associated Press