Microsoft sees first ever quarterly loss as Public firm
The software giant posted its first ever quarterly loss of $0.06 per share on sales of $18.06 billion, due to a huge $6.2 billion charge in its online services division relating to its failed 2007 acquisition of aQuantive.
Microsoft says an accounting adjustment to reflect a weak online ad business led to its first quarterly loss as a public company.
The software company had warned two weeks ago that it would take a $6.2 billion charge in the April-June quarter because its 2007 purchase of online ad service aQuantive failed to help it compete with Google Inc. The amount reflected the bulk of the $6.3 billion acquisition cost.
Including the big write-down on aQuantive, Microsoft booked a $492 million loss in the fiscal fourth quarter, or 6 cents a share. That compares with earnings of $5.9 billion, or 69 cents, a year ago.
The weakness in sales of Windows did not surprise analysts who follow the company. Research firms have been warning of poor computer sales for weeks now. Rick Sherlund, an analyst at Nomura Securities, said in a research note that Microsoft exceeded his expectations for the quarter, partly by keeping its costs under control.
Microsoft’s press release follows below:-
Microsoft sees first ever quarterly loss as Public firm
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