Microsoft Reports First Ever Quarterly Revenue Fall

    April 23, 2009

People with a grudge against Microsoft are liable to be in a decent mood this evening.  The company gave a quarterly financial report today, and in one important respect, it missed analysts’ estimates by a significant amount.

Microsoft LogoOnlookers wanted to see something in the neighborhood of $14.09 billion in terms of revenue.  Microsoft reported $13.65 billion instead, which represents a noteworthy drop compared to the $14.45 billion it took in the same quarter this year, and beyond all doubt, constitutes the company’s first-ever revenue decline.

Microsoft’s online services business came up short, too.  Revenue dropped from $843 million to $721 million, so, although Live Search is just part of the division, it doesn’t seem to be generating tons of profit.

Chris Liddell, Microsoft’s CFO, even noted in a statement, "We expect the weakness to continue through at least the next quarter."

Microsoft managed to report earnings per share in line with estimates, though, and this signaled that the company has a handle on costs.  Also, a release noted that Windows 7 "remains on track for a fiscal year 2010 launch," and "[d]evelopment milestones were achieved on other products including Microsoft Office 2010, Windows Server 2008 R2 and Windows Mobile."

Investors seem to be okay with the situation, sending Microsoft up 3.81 percent so far in after-hours trading.