Microsoft Sees Drop In Revenue For The First Time in 23 Years
Microsoft has announced a dip in its revenue and earnings per share (EPS) for the quarter ending March 31st. Its for the fist time in 23 years that Microsoft has seen a drop in revenue.
The Redmond, Wash.-based company said sales fell 6% from a year earlier to $13.7 billion, missing analysts’ expectations of $14.1 billion.
Meanwhile, the company’s net income fell 32% to $2.98 billion, or 33 cents per share, in its third quarter ended March 31.
Definitely the year hasn’t come with any good news for Microsoft. The company had earlier laid off 1,400 people in January and as per the estimates, 3,600 more will lose their jobs by mid-2010.
The company has had a difficult time combating slumping demand for its Windows operating system, as the economic slowdown has dragged PC sales down 7% to 9%, according to Microsoft’s estimates. The latest craze for Netbooks is also certainly not helping Microsoft, though they do mostly come with Windows XP, which is relatively cheaper as compared to other Microsoft OS , Vista ( which certainly was a disaster) and thus generates less income. Microsoft is now betting largely on the release of Windows 7, its new operating system ( which is expected to be released by late 2009).
Via CNN
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