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Microsoft Fiscal Q3 Revenue Slips 6% to $13.65 billion
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msg:3899030
 9:33 pm on Apr 23, 2009 (gmt 0)

Microsoft Revenue Slips 6% to $13.65 billion [marketwatch.com]
Microsoft Corp. on Thursday posted a sharp drop in fiscal third-quarter profit, as sales of computers loaded with its software fell and the company absorbed charges related to layoffs and declining investments.
The company also said it expects "weakness to continue through at least the next quarter." Redmond, Wash.-based Microsoft said net income fell $2.98 billion, or 33 cents a share, compared with $4.39 billion, or 47 cents a share, in the same period a year earlier. Revenue for the period ended in March slipped 6% to $13.65 billion. Analysts were expecting earnings of 39 cents a share on revenue of $14.1 billion, according to data from Thomson Reuters.

"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," Microsoft Chief Financial Officer Chris Liddell said in a prepared statement Thursday.


 

Slinger




msg:3899049
 9:45 pm on Apr 23, 2009 (gmt 0)

Only $13.65 billion....poor babies. I feel really bad for them. Im not going to sleep very well tonight.

maximillianos




msg:3899142
 12:24 am on Apr 24, 2009 (gmt 0)

The 13.65 billion is revenue, not profit. They raked in $2.98 billion in net income for the period.

Edge




msg:3899165
 1:16 am on Apr 24, 2009 (gmt 0)

The 13.65 billion is revenue, not profit. They raked in $2.98 billion in net income for the period.

Roughing it....

spiritualseo




msg:3899315
 6:33 am on Apr 24, 2009 (gmt 0)

It's a shame that a company whose products the whole world is dependent on cannot make a decent revenue. Definitely shows a lack of vision.

Here is what my 12 year old nephew suggests for MS:

1.) Concentrate on your core competencies - OS
2.) Improve the OS to make it faster and efficient. Tone down unnecessary items
3.) Make OS specific to different users. Like a highly toned down version for home users or for people who just need the PC to access the internet
4.) Integrate word, excel and power-point as part of the OS
5.) Reduce the cost of original software to what the pirated market offers. Work with software pirates to remove piracy. Offer them bulk discounts so they can still make their lively hood
6.) Drastically reduce licensing fees for companies so they do not switch to Open-office
7.) Start collaborating with other companies like browser companies, anti-virus companies etc. to make your OS stronger
8.) Improve support, Offer value

bill




msg:3899355
 7:59 am on Apr 24, 2009 (gmt 0)

Definitely shows a lack of vision.

Or it could show the extent to which the current global economic crisis has reached...

swa66




msg:3899367
 8:25 am on Apr 24, 2009 (gmt 0)

4.) Integrate word, excel and power-point as part of the OS

They better not in the EU, it'll land them yet another record breaking fine for abuse of monopolies.

swa66




msg:3899371
 8:32 am on Apr 24, 2009 (gmt 0)

Definitely shows a lack of vision.

Or it could show the extent to which the current global economic crisis has reached...

Compare it to Apple:
[webmasterworld.com...]
Revenue up 9% to $8.16 billion;
Net income up 20% to $1.2 billion.

While one might say that the profit margin of MSFT (21.8%) is larger than AAPL's (14.7%) keep in mind that Microsoft sells far more (expensive) software than Apple and software is easier to get a huge margin on, hardware isn't.

So back to vision: Ballmer ain't no Jobs, not by far.

Seb7




msg:3899405
 9:51 am on Apr 24, 2009 (gmt 0)

4.) Integrate word, excel and power-point as part of the OS

Would be nice, but because of some silly laws wouldn’t be allowed. MS got done for $690 million just for integrating Media Player.

6.) Drastically reduce licensing fees ..

Free software and free operating system becoming more available purely because people dont want to pay large licensing fees. Reducing them would increase MS's stake, but might not increase profitably.
..

Personally, producing an efficient OS that needs little ongoing support should be top of their agenda.

[edited by: Seb7 at 9:53 am (utc) on April 24, 2009]

Green_Grass




msg:3899691
 3:15 pm on Apr 24, 2009 (gmt 0)

so are they laying of people yet..

bakedjake




msg:3899695
 3:18 pm on Apr 24, 2009 (gmt 0)

Compare it to Apple

Apple is in growth mode. Microsoft pays dividends.

They're in two very different life cycle stages as companies.

Considering the fact that the market cap of the markets are off 35-40%, Microsoft's numbers were quite well received. The market rewarded them for cost cutting, even with the decrease in revenues.

So back to vision: Ballmer ain't no Jobs, not by far.

A lot of people wonder what will happen to Apple if Jobs goes away. Stick your hand up if you remember Apple's performance in the late 80s and early 90s. No one wonders what will happen to Microsoft if Ballmer goes away.

Jobs is an asset and a liability.

---

I'm not a Microsoft apologist, but they have been incredibly resistant to downward changes in the economy. Apple will be cutting retail jobs soon. One of the biggest weaknesses Apple has created for themselves in their transition to being (mostly) consumer focused is that they will set themselves up for bigger financial swings based on consumer spending habits.

---

software is easier to get a huge margin on, hardware isn't.

IBM and HP may disagree. ;)

poppyrich




msg:3899772
 4:15 pm on Apr 24, 2009 (gmt 0)

MS has Bill Gates's DNA.
Never underestimate their ability to up-end all their business assumptions, change direction, and act with the intensity of a start-up.

Plus, that much cash gives them a lot of options and buys them a lot of time.

np2003




msg:3900655
 9:51 pm on Apr 25, 2009 (gmt 0)

1.) Concentrate on your core competencies - OS
..they make more money on their developer tools/business software than they do on VISTA, why focus everything on just the OS when it is a cycle release, e.g. every 4-5 years (massive revenue as users buy the next version of Windows, than sales drop off after)

5.) Reduce the cost of original software to what the pirated market offers. Work with software pirates to remove piracy.

Again and again, this does not work. People will pirate because they can. People are still complaining off record companies "ripping" them off, when iTunes sells songs for $1 each. Piraters still regard this as 'ripping them off'. There will always be those that buy, and those that never buy.

6.) Drastically reduce licensing fees for companies so they do not switch to Open-office
Why? MS still has a huge monopoly in this segment, open-office only has a tiny fraction of the market, why reduce fees which leads to less revenue/profit?

What MS needs to improve on is making better versions of what they have atm. They need better products/marketing. Example is iPod vs Zune, Google vs Live. Seems they just have a competing product in each field, not a winning product.

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