Rediff.com  » Business » Microsoft revenue dips 1st time in 23 years

Microsoft revenue dips 1st time in 23 years

Source: PTI
April 24, 2009 16:44 IST
Get Rediff News in your Inbox:

Software giant Microsoft reported a decline in quarterly revenue for the first time in 23 years as adverse economic conditions globally took a toll on the entity's business.

Hit by plunging sales, Microsoft saw its profit plunge to a little below $3 billion for the third quarter ended March 31.

The software major posted a six per cent fall in revenue at $13.65 billion, the first of its kind since the company went public 23 years ago. In the year-ago period, Microsoft's revenue stood at $14.45 billion, the firm said.

The entity's third-quarter profit slumped 32 per cent to $2.97 billion. It had a profit of $4.38 billion in the year-ago period.

With the global economic turmoil hitting the personal computers and server markets, the software giant had a negative impact on various business segments, including 'Microsoft Business Division' and 'Server & Tools'.

Striking a gloomy note, the company's chief fnancial oficer Chris Liddell warned the 'eakness to continue through at least the next quarter'.

"While market conditions remained weak during the quarter, I was pleased with the organisation's ability to offset revenue pressures with the swift implementation of cost-savings initiatives.

"We expect the weakness to continue through at least the next quarter," Liddell said.

The third quarter results include severance charges to the tune of $290 million related to plan to slash 5,000 positions in the company. Microsoft also incurred impairments to investments worth $420 million.

For the nine months ended March 31, 2009, the company registered a profit of $11.52 billion against $13.38 billion in the corresponding period a year ago. During the same time, theĀ  entity's revenues touched $45.33 billion whereas the same stood at $44.58 billion in the year-ago period.

Meanwhile, Microsoft expects expenses to be in the range of $26.7 billion to $26.9 billion including severance charges for the full year ending June 30, 2009.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2021 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
SHARE THIS STORY 

Moneywiz Live!