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Microsoft reports unprecedented fall in revenues

by Scott Bicheno on 24 April 2009, 10:35

Tags: Microsoft (NASDAQ:MSFT)

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A mere $3 billion profit

Microsoft reported revenue of $13.65 billion for the quarter ending 31 March, this represented a six percent decline on the same quarter a year ago, which was the first time this has happened to Microsoft as a public company.

Net income declined by 32 percent year on year as the slump in PC sales kicked in, but Microsoft still profited to the tune of nearly three billion dollars, so let's not feel too sorry for it.

"While market conditions remained weak during the quarter, I was pleased with the organization's ability to offset revenue pressures with the swift implementation of cost-savings initiatives," said Chris Liddell, chief financial officer at Microsoft. "We expect the weakness to continue through at least the next quarter."

There were no more lay-offs announced and the results seem to have been in line with analyst expectations. Microsoft's shares were up around three percent in pre-market trading at time of writing.

 

HEXUS Forums :: 6 Comments

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Posted by Singh400 - Fri 24 Apr 2009 10:43
Nothing really surprising here, was expected tbh. Every company (bar tesco) has reported the same thing.
Posted by TheAnimus - Fri 24 Apr 2009 11:03
Given the amount of MS income that is depend on businesses buying Office etc, this is very predictable.

The question is what will they do? To much of the tech press has been harping on about vista (they do love a bandwagon) but in reality most analysits tell you that the Office product is a more important and more valuable one, given that 2007 has been seen by many as skippable (plenty of people are still on Office 2000), will 2010 be any different with its 64bit support?

How will microsoft try and do better in the downturn, or are they going to do a Darling, put their fingers in their ears and say no everything will be alright tommorow.
Posted by dangel - Fri 24 Apr 2009 11:27
MS already have their ace - Windows 7. Not only is the product very good, but the marketing of it has been rather masterful too, aping Apple's clever hyping.
Posted by Singh400 - Fri 24 Apr 2009 11:31
I can't see a massive influx of fresh income because Office 14 will be in x64 flavour too. I do see a massive fresh income for Windows 7, purely because this time the internet community is getting behind it.
Posted by hermano pequeño - Fri 24 Apr 2009 16:23
TheAnimus
To much of the tech press has been harping on about vista (they do love a bandwagon) but in reality most analysits tell you that the Office product is a more important and more valuable one, given that 2007 has been seen by many as skippable (plenty of people are still on Office 2000), will 2010 be any different with its 64bit support?

Whether or no Vista is a bandwagon, I think we can agree that regarding reliability and consumer trust of the product, Vista has to be seen as one of the most unsuccessful launches of any MS OS, can't we?

What astonishes me most of all is that it has taken a deep global recession, not the afore-mentioned “comparative” failure of Windows Vista, to seriously dent the profit-making juggernaut which is Microsoft.

With financial institutions being considered “too big to allow to fail” I find it ironic that MS appears to make fairly decent profit on their failures without needing “bail outs” or hot “cash injections” from governments or the IMF.

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