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Microsoft profits fall in run-up to Windows 8

Operating income down 26 percent as revenues slide
Fri Oct 19 2012, 11:37
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SOFTWARE HOUSE Microsoft has reported third calendar quarter revenues of $16.0bn in a challenging financial quarter for the company.

Overall profits slipped by 22 percent over the same period in 2011 to $4.47bn as the firm was caught up in the same issues that have blighted the PC market as buyers hold out for Windows 8 devices.

The operating system is set to hit general availability on 26 October, with a slew of devices from manufacturers running the platform to follow soon after.

"The launch of Windows 8 is the beginning of a new era at Microsoft," said chief executive Steve Ballmer.

"Investments we've made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners."

Microsoft hopes that the launch will more than make up for what was a poor quarter for its Windows and Windows Live division. The unit saw revenues weigh in at $3.24bn, down 33 percent from last year.

There were, however, some bright spots for Microsoft. The company's Server and Tools business hauled in $4.65bn in revenues, up eight percent from the previous year.

That figure could improve next quarter as the company continues with its rollout of Windows Server 2012.

Online services also performed well for Microsoft, bringing in $697m in revenues and a nine percent growth over the same quarter last year.

The company reported that its advertising operation managed to grow revenues by 15 percent year on year.

The overall slide matches similar results seen by other tech heavyweights including IBM, HP and even Google, which also posted its results on Thursday. µ


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