For the period ending March 31, Microsoft reported revenue of US$13.65 billion, down 6 percent compared to the same quarter last year and below the $14.09 billion that analysts predicted.

Diluted earnings per share were $0.33, down 30 percent over last year and below the $0.39 analysts expected.

Microsoft's operating income for the quarter was down just 3 percent, hitting $4.44 billion, compared to the same period last year.

The company blamed weakness in the global PC and server markets for a poor showing in its Client, Microsoft Business Division and Server & Tools groups. However, it said that revenue from enterprise customers was stable.

That's contrary to what many analysts expected.