Microsoft revenue down 14%, profit plummets 18%

Apple StoreMicrosoft Corp. has announced that their company’s “profit declined 18% from last year,” Jerry A. DiColo reports for The Wall Street Journal.

“The slump in global PC sales and broad economic weakness has battered Microsoft’s results over the last year, compounding already weakened demand for Windows Vista,” DiColo reports. “But on Thursday, the company moved to recharge revenue growth with the launch of its next-generation operating system, Windows 7.”

MacDailyNews Take: Funny, there seems to be no “slump” in Mac sales despite “broad economic weakness.” Apple just sold a record number of Macs, so Microsoft’s excuse rings hollow. More likely, people are tired of wasting their money on cheap poorly-faked Macs and are instead wisely investing in the real thing. And “next-generation” sounds so much more impressive than what it really is, a Vista service pack. “Window 7” is nothing more than lipstick on the Vista pig.

DiColo continues, “Revenue for its Windows unit, Microsoft’s largest division, was still down 39% from last year, and earnings for the division fell 52%. For the quarter ended Sept. 30, Microsoft reported earnings of $3.57 billion, or 40 cents a share, down from $4.37 billion, or 48 cents a share, a year earlier. Revenue declined 14% to $12.92 billion.”

“Analysts polled by Thomson Reuters expected earnings of 32 cents on revenue of $12.37 billion,” DiColo reports. “The company’s server and tools was the only one to post revenue growth, albeit 0.5% growth, while sales at the business division fell 11%. In online services, a small but important division, revenue decreased 5.8%… Meanwhile, Microsoft reduced its full-year operating expense guidance by $400 million to between $26.2 billion and $26.5 billion.”

Full article here.

MacDailyNews Take: Declined, decreased, fell, reduced, down, weakened, and battered. Any questions?


  1. “Yet MS’ share price is UP 7.17%,”

    Investors buy the future, not the past. Trailing earnings are the base/foundation from where future expectations are measured.

    MSFT gave positive guidance for the DEC quarter based on revenue expectations derived from the Win7 launch.

  2. “MS is a software company. It’s sales depend to a large extent on hardware sales.

    So, in you’re MS-bashing takes, don’t forget to trash the hardware companies, too.

    … just to be fair ….”

    That would explain why Apple’s hardware sales are up. Oh, but wait, Apple is a software company, that sells EXPENSIVE hardware.

  3. The dead parrot sketch never loses its edge does it and here it is in all its glory with Stevie Ballmer doing his wonderful John Cleese impression. One presumes that the amazing plumage of a windows 7 launch was planned to hide these little details away but that didn’t quite sqwark loud enough either did it. Cue geeky PC monkeyboys detailing how wonderful that there’s a little life left afterall, as its health wasn’t quite as sickly as expected. I can see them now spinning the parrot on its perch to feign life. Comedians one and all.

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