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Microsoft Reports First Loss Ever

[Techtaffy Newsdesk]

Microsoft announced quarterly revenues of $18.06 billion for the quarter ended June 30, 2012. Operating income and loss per share for the quarter were $192 million and 6 cents per share. This is the first time in the history of the company that Microsoft reported a quarterly loss, since the company’s initial public offering in early 1986.

The Redmond giant had warned earlier that it will be taking a non-cash, non-tax-deductible income statement charge for the fourth quarter of fiscal year 2012 for the impairment of goodwill in its Online Services Division segment, mostly related to its 2007 aQuantive acquisition. The financial results also reflect the deferral of $540 million of revenue related to the Windows Upgrade Offer.

For Microsoft’s fiscal year 2012, the company’s revenue, operating income, and earnings per share were $73.72 billion, $21.76 billion, and $2.00 per share.

The Server & Tools business revenue grew 13% for the fourth quarter and 12% for the full year. The Microsoft Business Division revenue grew 7% for the fourth quarter and 7% for the full year reflecting continued momentum in Office 2010 sales. Office is now installed on more than 1 billion PCs around the world.

The Windows & Windows Live Division revenue declined 13% for the fourth quarter and 3% for the full year. Windows 7 adoption continued with more than 50% of worldwide enterprise desktops now running Windows 7.

The Online Services Division revenue grew 8% for the fourth quarter and 10% for the full year reflecting growth in our search business. Bing organic U.S. search market share was 15.6% for the month of June 2012, up 120 points from the prior year period.

The Entertainment and Devices Division revenue grew 20% for the fourth quarter and 8% for the full year primarily reflecting the addition of Skype. Xbox has now been the top-selling console in the U.S. for 18 consecutive months. Microsoft reaffirms fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.

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