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Microsoft Revenues Soft As Company Awaits Windows 8 Rollout
Post PC era indeed. Microsoft announced quarterly results yesterday and, although they were massive, they were flat or down compared with a year ago. Overall Microsoft reported revenue of $16.01 billion.
Windows software sales were down 33 percent compared with a year ago. They came in a $3.24 billion vs. $4.87 billion in 2011. Microsoft attributed this in large part to the transition to Windows 8 and delayed enterprise and consumers purchases in anticipation of the launch.
Microsoft’s other cash cow business, Office, declined a much less severe 2 percent to $5.5 billion (from $5.63 billion a year ago).
Source: Microsoft earnings statement
Many financial analysts were not overly critical of the company because of the forthcoming launch of Windows 8, the company’s Surface line of tablets and the Windows 8 upgrade for mobile phones. However Redmond is probably facing the most competitive environment it has ever encountered, with Google on one side (Android, Chrome, Enterprise Apps) and Apple on the other (iPhone, iPad).
One bright spot: the Online Services Division, which houses Bing and advertising, reported both greater revenue and a smaller operating loss — $697 million and $364 million respectively.