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Microsoft Blurts Out Bad Q2 Info

Missed targets, at least 1,400 layoffs

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This morning at Microsoft, it seems that someone sighed, "Let’s get it over with."  The company has released a fourth quarter financial report that wasn’t supposed to turn up until after trading hours, and the numbers in it aren’t pretty.

Steve Ballmer
 Steve Ballmer

Some of the negative news was spilled in the very first paragraph.  It admits, "Microsoft Corp. today announced revenue of $16.63 billion for the second quarter ended Dec. 31, 2008, a 2% increase over the same period of the prior year.  Operating income, net income and diluted earnings per share for the quarter were $5.94 billion, $4.17 billion and $0.47, declines of 8%, 11% and 6%, respectively, compared with the prior year."

A two percent increase is sad, of course, and those declines are downright nasty.  Microsoft isn’t offering quantitative earnings and revenue guidance, either, which speaks to a shaky future.

Then there was a depressing heads up for the company’s employees.  Microsoft is cutting 1,400 jobs today, and may trim as many as 3,600 more over the next 18 months.  People in R&D, marketing, sales, finance, legal, HR, and IT are all at risk.

Still, Steve Ballmer tried to stay upbeat.  The CEO stated, "While we are not immune to the effects of the economy, I am confident in the strength of our product portfolio and soundness of our approach.  We will continue to manage expenses and invest in long-term opportunities to deliver value to customers and shareholders, and we will emerge an even stronger industry leader than we are today."

Microsoft’s stock is down 9.00 percent at the moment.

Microsoft Blurts Out Bad Q2 Info
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  • Sailingwindward

    Bill Gates is a lowlife , months ago he went to congress asking for more H-1 visas for foreign workers saying there where not enough US workers here for the jobs available, but now firing Americans while keeping the low wage immigrant H-1 visa workers and expanding more outsourced jobs overseas, Bill Gates should be ashamed of him self, a man that has made his wealth off Americans and now fighting against American workers and their families, I can’t think of a more lowlife example of a person than him right now.

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