Another Epic Decline for Microsofts Revenue

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Another Epic Decline For Microsofts Revenue

By: Andy Beal
2009-07-31

If you were hoping Microsoft would rebound from its poor 3rd quarter earnings, you may wish to sit down. Yesterday, the software company...

...reported its first year-over-year revenue and sales drop ever-which will compliment nicely the quarterly drop from Q3.

According to the WSJ:

"Microsoft said net income for the period ended in June fell to $3.05 billion, or 34 cents a share, from $4.3 billion, or 46 cents a share, in the same period a year earlier. Revenue fell 17% to $13.1 billion."

Breaking it down, Microsofts online services unit continues to struggle"posting a $732 million loss. Its online advertising revenue faired slightly better than last quarters 16% drop, seeing a mildly improved 14% decline"the equivalent of telling a teenager on prom night that the humongous zit on their chin looks "less pussy today."

There is some good news. At least if you believe the words that come from any company executive following a disastrous quarter. Microsoft Chief Financial Officer Chris Liddell stated during the conference call that "there are some signs that weve seen the worst" and that "the spending environment is stabilizing on a sequential basis."

That seems to back up what Liddell said last quarter: We expect the weakness to continue through at least the next quarter.

We shall see.

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About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at andy.beal@gmail.com.


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