Microsoft posts 29% drop in profit, cites lagging PC and server sales
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Microsoft Corp. reported disappointing earnings in the quarter ending June 30, with revenues, profit and per-share earnings all missing analyst expectations.
‘Our business continued to be negatively impacted by weakness in the global PC and server markets,’ said Chris Liddell, chief financial officer at Microsoft.
The Redmond, Wash., software giant reported a 29% drop in profit, to $3.05 billion, or 34 cents a share, along with a 17% decline in revenues at $13.10 billion.
Shares lost as much 8% in late trading after gaining 76 cents, or 3%, to $25.56 in regular trading.
Profit slumped across all of Microsoft’s business segments, including a particularly steep 33% decline in its Client division, which makes the Windows operating system products.
Showing its intense interest in competing in Web-based markets, Microsoft made several major announcements during the quarter, including the launch of its new Bing search engine and the unveiling of a cloud-based suite of Office software to be launched next year.
-- David Sarno