Microsoft Corp posted a steeper-than-expected 17 percent drop in quarterly revenue and said its business continued to be hurt by the weak global PC and server markets, sending its shares down 8 percent and hurting broader stock futures.
The world's largest software maker, whose operating systems power the vast majority of the world's personal computers, offered little hope for a turnaround in technology until next year, despite recent optimism from others in the sector.
"We still see conditions being challenging for the balance of this calendar year," Chief Financial Officer Christopher Liddell said in a telephone interview.
"At least sequentially, we are seeing a little bit of growth. While things are not necessarily getting better, they may have have bottomed out," said Liddell.
Microsoft reported fiscal fourth quarter net profit of $3.045 billion, or 34 cents per share, compared with $4.297 billion, or 46 cents per share, in the year-ago quarter.
Profit excluding items was 38 cents per share for the quarter ended June 30, beating analysts' average forecast of 36 cents per share according to Reuters Estimates.
Sales fell 17 percent to $13.1 billion, missing analysts' average estimate of $14.48 billion. Annual sales of the company's Windows operating system -- its first and most important business -- fell for the first time on record.
"They were really light on revenue. I hope they'll highlight that on the call, give more clarity. I would hope in the call they're going to tell us where the dollars are," said Kim Caughey, senior analyst at Fort Pitt Capital Group.
The company is preparing to bring out the latest version of its operating system, Windows 7, on Oct. 22. Liddell said that release would not, on its own, spark a recovery in PC sales.
Microsoft's shares fell 8 percent to $23.44 in extended trading, after closing up 3 percent at $25.56 on Nasdaq, contributing to losses on stock futures across the board.
Friday, July 24, 2009
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