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Last Updated:
Jul 24, 2009 - 10:50:44 AM |
Microsoft reports worst year in 23 years as public company; Tech-dominant Nasdaq Composite Index rises for a 12th day in a row
By Finfacts Team
Jul 24, 2009 - 7:48:00 AM
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| Main entrance to the Microsoft Redmond Campus, Washington State.
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Microsoft on Thursday reported fourth quarter earnings, which capped its worst year in its 23-year history as a public company. Its earnings report came after the closing bell on a day when the tech-dominant Nasdaq Composite Index rose for a 12th day in a row -- the longest such streak since 1992. The index rose 2.5%, boosted by an 11% gain in online auctioneer eBay after it said current-quarter results would top analyst estimates.
Microsoft reported quarterly revenues had declined 17% to $13.10 billion, amid falling global demand for new PCs and servers. The news followed recent positive earnings news from Apple, Intel and IBM.
Operating income, net income and diluted earnings per share for the quarter were $3.99 billion, $3.05 billion and $0.34 per share, which represented declines of 30%, 29% and 26%, respectively, when compared with the prior year period.
Microsoft also presented a cautious outlook for the second half of 2009.
“It’s going to be difficult for the rest of the year,” said Chris Liddell, chief financial officer. “We’re really still not sure we’re out of the woods.”
“Our business continued to be negatively impacted by weakness in the global PC and server markets,” Liddell added. “In light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter.”
For the fiscal year ended June 30, 2009, Microsoft reported revenue of $58.44 billion, a 3% decline from the prior year. Operating income, net income and diluted earnings per share for the year were $20.36 billion, $14.57 billion and $1.62, which represented declines of 9%, 18% and 13% respectively.
“While economic conditions presented challenges this year, we maintained our focus on delivering customer satisfaction and providing solutions to our customers to save money,” said Kevin Turner, chief operating officer at Microsoft. “I am very excited by the wave of product and services innovations being delivered in this next fiscal year.”
The division that includes the Windows operating system, which accounts for more than half of Microsoft's operating profit, was hit especially hard. Revenue fell 29% from a year ago to $3.11 billion.
Results detail
