Microsoft posts quarterly decline as PC sales fall

by James Quilter , Brand Republic 24-Apr-09, 09:15

LONDON - Microsoft's internet and software divisions have struggled amid the recession as the company posted its first ever fall in revenue.

The news came as Microsoft posted its results for the third quarter ending March 31, revealing revenue of $13.65bn (£9.31bn), a 6% decline on the same period in 2008.

Microsoft said the company's performance had been affected by the performance of its PC software division which fell by 16% as fewer PC's pre-loaded with its operating system were sold.

Revenue from its internet division has fallen again this time dropping by 14%. Despite investment in search marketing it has struggled to trouble the likes of Google and Yahoo!.

The good news is that Microsoft still managed to post a $2.98bn profit. This is largely down to cost cutting measures including a reduction in travel. In January it announced 5,000 job cuts in divisions including research and development and marketing.

Microsoft chief operating officer Kevin Turner said: "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."

Turner said the company was on track to deliver several new products in 2010 including the Windows 7 operating system, Office 2010 and a new version of Windows Mobile.

Earlier this year Microsoft announced plans to emulate Apple's concept stores launch a similar chain in the US. The stores will be used to showcase the brand's product range.

Comments

Gellan Watt - 25/04/2009

To be expected with a tech slowdown - it will come back round. All part of living in these tough financial times. I think they may have enough in the bank to work through it, huh?!