Microsoft’s Revenue Drops by 6 Percent
By Anna Johnson on April 27th, 2009For the first time since Microsoft went public in 1986, the company reported a year-over-year decline in revenue for its third quarter ended March 31, 2009.
Microsoft’s revenue fell 6 percent to $13.65 billion in its third quarter. It was $14.45 billion in the third quarter the year before.
Microsoft’s net income was also down significantly. During the quarter, net income was $2.98 billion, 32 percent below the $4.39 billion achieved for the same period last year.
Among the causes of Microsoft’s overall drop in revenue and net income was its online services business. During the quarter, Microsoft’s online ad sales fell from $843 million to $721 million.
Microsoft’s core Windows business also suffered, with sales decreasing from $4 billion in the third quarter last year to $3.4 billion in the third quarter this year.
A bright spot was Microsoft’s netbooks business. While the company’s PC sales fell by 7-9 percent in the quarter, without including Netbooks, the loss would have been in the 15-17 percent range.
April 28th, 2009 at 8:28 am
The recession has impacted even the biggest companies worldwide. However, I think that if Microsoft puts the effeort required to improve windows then sales would not be impacted as much.
April 28th, 2009 at 8:34 am
Good point Mini. Would someone also tell Microsoft that, when it comes to Windows, Office, etc, ‘bloated’ is not better?