Friday, April 24, 2009

Microsoft Profit Declines 32%, Will Cut 5000 Jobs

. Friday, April 24, 2009

By stockOzone team

Microsoft has reported that its latest quarterly profits slid 32% from a year earlier to $2.98 billion as bleak economic conditions caused an unprecedented erosion of its revenues.

The software giant said its revenue for the three months to March 31 - its financial third quarter - was $13.65 billion, compared with $14.45 billion in the same quarter last year.

'We expect the weakness to continue through at least the next quarter,' said Microsoft chief financial officer Chris Liddell, who warned that the current three-month period is expected to be rocky. Microsoft's financial year ends with the current quarter.

The results show that while the US company's revenue for the past nine months is ahead of what it was during that period a year earlier, profits are down by almost $2 billion.

Microsoft said that revenue in its Client, Business, and Server & Tools divisions suffered due to weak global server and personal computer markets. The company reported that the recent quarter's costs included $290m linked to a previously announced plan to cut as many as 5,000 jobs.

Microsoft said it remained on track to release its next-generation operating system, Windows 7, in 2010.

Disclosure: Author does not own any of the stocks discussed here.

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