Microsoft reports first YoY revenue slide in company history

News

This past Wednesday Apple reported a very solid quarter due to growing iPhone and iPod sales that provided enough revenue to diminish its waning personal computer sales. Unfortunately it looks like Microsoft had no such cushion. For the first time in the company’s storied 23-year history, Microsoft reported a year over year slide as Q3 FY09 revenue declined 6 percent to $13.65 billion. Net income slid as well, down a disheartening 32 percent YoY to $2.98 billion. While enterprise revenue remained stable in the quarter, the company cited “weakness in the global PC and Server markets” in rationalizing its poor Q3 performance. So when might things pick up in Redmond? Microsoft admittedly has a lot riding on Windows 7, beta versions of which have been received with open arms by developers and end users alike. With resoundingly positive feedback from beta testers so far, Microsoft could be able to revive stagnant sales on the back of its new OS. According to the company, Windows 7 is still on track for a release in FY10.

[Via NYT]

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15 Comments
  • JRod

    First!

  • gokmengs

    @Zach
    “Microsoft reported a year over year loss as Q3 FY09 revenue declined 6 percent to $13.65 billion.”
    MS didn’t report a YoY “loss” its just that they didn’t exceed last years Q3 revenue, not good but far from a loss.
    Anyway not the good old days for MS but, when they release Windows 7, no matter the product is crap or not they will still print money. Hope they can do a somewhat decent OS finally.

  • http://www.rangercreek.com Doc

    What does YoY mean?

  • Robert Padilla

    Year over year

  • Marin

    Yeah, there was no loss – just a dip in revenue from the previous year. It makes sense with the economy, as even Google saw a slight revenue decline. MS has a lot of problems, but it still had nearly $3 billion in profit for the quarter – I wish I had those kind of problems.

  • jebus

    microsoft needs to convince IT that windows 7 is worth it, thats when they’ll get the big push.

    I can’t see it happening though.

  • BoogerEater

    Oh… And here I was thinking a year over year loss means they didn’t make as much money as last year. Like if they made $20 billion last year and $10 billion this year, it’s a year over year loss of $10 billion…. *shrugs* Guess you financial gurus know better.

  • gokmengs

    @ Jrod
    Its been decided that writing “first” to claim you are the first one to post a comment makes you a “QDB”, this is basic BGR etiquette:)
    Thanks for the contribution.

  • http://ran-o-matic.com ranomatic

    @BoogerEater

    You can have a YoY increase or decrease both in revenue and in profit, but if you make a profit (even if it is less profit than last year), you would never call it a loss.

  • BoogerEater

    @ranomatic,
    I am well aware of that, but obviously the article is talking about year over year profit. And the profit this year is less than it was last year, which is the first time ever Microsoft has made less money than the year prior. No where in the article does it say they lost revenue or lost profit. It’s comparing last years earnings to this years earnings ( well last year and the year before ), which was less this past year than the year before. Still amazing gains, even with all the Vista craziness.

  • Russ

    Here’s a likely case where the Microsoft’s overwhelmingly successful introduction of Windows 7 (Beta) have actually hurt them in terms of short-term revenue growth – as corporations (and some consumers!) postpone new PC purchases and operating system upgrades while they await the new OS.

    As a long-term view technologist and investor, that tends to bolsters my opinion of Microsoft’s future, rather than detract from it.

  • James

    Too bad MS isn’t trying to develop the Zune into a phone that could give the iPhone a run for it’s money

  • mingkee

    I think MS is doing fine
    Win7 is on the way
    XP is still widely used, that is enough to offset Vista’s loss
    Xbox 360 is also successful
    WM…hope it still can holding its own, because it’s the most liberal mobile OS, you can hack all the HELL out

  • nimbus

    LMAO

    LMAO

    LMAO!!!!!!!

    !

  • nimbus

    M$ $UX$!!!!!!!!!!!!!!

    LMAO

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    LMAO!!!!!

    EAT IT MONKEY BOY BALLMER!!!!!!!!!!!!!!!!!!!!!!

    LLLLLLLLLOOOOOOOOOOOOOOOOOOLLLLLLLLLLL!!!!!

    ;)

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