Friday, July 24, 2009

Microsoft sales, profits plummet

Microsoft today reported revenue of $13.1 billion for its fiscal fourth quarter, a 17 percent decline, and earnings per share of 34 cents -- missing, by two cents, the consensus of Wall Street analysts polled in advance by Thomson Reuters.

Analysts had expected more than $14.3 billion in revenue for the quarter.

Microsoft chief financial officer Chris Liddell cited the ongoing effects of the difficult economy, saying that the company's profit margins were helped by continued cost-cutting. "In light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter," Liddell said in a news release.

The company said $276 million in revenue was deferred from the fourth quarter results because of the Windows 7 Upgrade Option program, which lets people who buy Windows Vista PCs upgrade to Windows 7 after its Oct. 22 release. Accounting rules prevent the company from counting those sales as revenue until buyers have the option to make the upgrade.

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