Microsoft revenue down 6%; worse than predicted

23.04.2009
Thursday reported a 6% decline in revenue for its fiscal third quarter, a drop that was 3.5% greater than what analysts were expecting.

A poll of analysts by Thomson Reuters showed expectations for third-quarter revenues of US$14.09 billion, down from $14.45 billion in the same quarter last year.

The news was across all of Microsoft's business units, with drops in every segment except servers and tools. The server and tools business had been Microsoft's most consistent performing business segment for the past two years.

And Microsoft officials said they are not predicting any change for at least the next quarter, which ends June 30. Last quarter, Microsoft said due to volatility of market conditions that it would no longer offer quantitative or earnings per share guidance for the rest of fiscal 2009.

In the earnings report, Microsoft showed revenue of $13.65 billion for the third quarter ended March 31. Revenue for the same quarter in 2008 was $14.45 billion.

Microsoft said revenue in client, business division, and server and tools was down due to weakness in the global PC and server markets.