Friday, March 12, 2010 0:59

Microsoft sales decline 6% from a year ago

Posted by Paul on Friday, April 24, 2009, 18:18
This item was posted in Internet and has 0 Comments
"We expect the weakness to continue through at least the next quarter,"

"We expect the weakness to continue through at least the next quarter,"

Microsoft report sales have fallen by 6% for the quarter that ended on the 31st March.

Software giant, Microsoft, said that their monetary third-quarter sales were around $13.65 billion. However, in comparison to last year, they are down by an astonishing 6%, which meant they turned over $14.45 billion.

According to Reuters Estimates. many people had orignally been predicting that Microsoft would of gotten around $14.15 billion, giving shares of 39 cents, which before were marked at 47 cents.

Even before these stats were published, people had an idea that Microsoft would be affected by the recession just as many other companies are, such as when BT shares dropped.

Microsoft Chief Financial Officer, Chris Liddell, quoted:

“While market conditions remained weak during the quarter, I was pleased with the organization’s ability to offset revenue pressures with the swift implementation of cost-savings initiatives. We expect the weakness to continue through at least the next quarter.”

As you would expect, Microsoft are going through a bad patch right now and so want to keep much information to themselves reflecting on what they think the operating costs could be for the next quarter, ignoring any specific details on the quarter next approaching.

Microsoft, again, decline to give any juicy details to analysts. Merely saying it “remains on track for a fiscal year 2010 launch.” Though Microsoft have been trying hard to bring Windows 7 for PC’s on schedule by early August, from what we have heard, it is still quite doubtful.

Not only did this affect general sales, it affected Microsoft’s online advertising by declining by a staggering 16%. In addition to advertising, PC’s were down more than 8% especially after the Netbooks sale rage. However, Microsoft surprisingly have increased sales Xbox 360 selling over one and a half million of the consoles this quarter, giving them a 30% which for them, could take them away from the dreaded, danger zone.

In terms of shares, on Thursday when the stats were released, closed at $18.92 (+14 cents) and products were traded at $19.85 (+93 cents.)

Despite this quarter’s sales, I still think Microsoft will do a lot better than other companies as many people still use their services as they are reliable and have great support.

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