Another Epic Decline for Microsoft’s Revenue

By Andy Beal on July 24, 2009

Another Epic Decline for Microsoft’s Revenue

If you were hoping Microsoft would rebound from its poor 3rd quarter earnings, you may wish to sit down.

Yesterday, the software company reported its first year-over-year revenue and sales drop ever–which will compliment nicely the quarterly drop from Q3.

According to the WSJ:

…Microsoft said net income for the period ended in June fell to $3.05 billion, or 34 cents a share, from $4.3 billion, or 46 cents a share, in the same period a year earlier. Revenue fell 17% to $13.1 billion.

Breaking it down, Microsoft’s online services unit continues to struggle–posting a $732 million loss. Its online advertising revenue faired slightly better than last quarter’s 16% drop, seeing a mildly improved 14% decline–the equivalent of telling a teenager on prom night that the humongous zit on their chin looks "less pussy today."

There is some good news. At least if you believe the words that come from any company executive following a disastrous quarter. Microsoft Chief Financial Officer Chris Liddell stated during the conference call that "there are some signs that we’ve seen the worst" and that "the spending environment is stabilizing on a sequential basis."

That seems to back up what Liddell said last quarter: “We expect the weakness to continue through at least the next quarter.”

We shall see.

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12 comments on “Another Epic Decline for Microsoft’s Revenue”

Jack Humphrey Says:

July 24th, 2009 at 12:32 pm

LMAO – nice analogy on the zits!
Andy Beal Says:

July 24th, 2009 at 12:45 pm

Thanks Jack!
Social Media Commando Says:

July 24th, 2009 at 12:54 pm

Will the Chinese be eating our Online lunch in 5 to 10 years?

Microsoft Down, Baidu Up.

It’s going to be an interesting ride.

Social Media Commando’s last blog post..10 Social Media Job Search Tips
jlbraaten Says:

July 24th, 2009 at 2:01 pm

I bet there’s a company policy brewing with Microsoft. Everyone must at least once per day knock on wood with the hopes that Windows 7 and Bing can pave the way.

jlbraaten’s last blog post..The Top 8 Best Free Audio Podcast Downloads on the Web
Friday: Microsoft Earnings, "Blue Dogs" Bite Healthcare, and What's Dick Doing in Buffalo? | The Blue Flag Says:

July 24th, 2009 at 10:27 pm

[...] today that weren’t considered up to snuff by analysts and investors. Microsoft’s revenue continues to slide on a weak PC market and the ongoing reluctance of consumers to adopt their highly criticized [...]
Danny Says:

July 25th, 2009 at 9:40 am

Yes it would be interesting to see what happens to Microsoft next quarter

Danny’s last blog post..What are the things that you should consider when looking for the best website host?
Rockstar Says:

July 25th, 2009 at 1:17 pm

Great blog ahead ! Kudos..

16 % is really a huge loss !!

Rockstar’s last blog post..New Commonly used Icon sets
Techrar Says:

July 25th, 2009 at 1:19 pm

Hi,
Great Post yar … Microsoft is down … hmm..

Techrar’s last blog post..Harry Potter And The Half Blood Prince ? Game
100% Mortgage - Les Says:

July 26th, 2009 at 2:41 pm

I guess people aren’t buying as much software as before, its not a necessity.
Clint Brothers Says:

July 27th, 2009 at 5:29 am

With Ubuntu GNU/LINUX, BSD, and Open Solaris on the free side and Apple on the other there’s not much room for a middle man that can’t deliver the product in one piece. Goodbye-microsoft.com no more bully in town.
Rezingão, o Dvorak tem razão? | sixhat pirate parts Says:

July 27th, 2009 at 5:48 am

[...] Isto para já não falar da falta de resultados da Microsoft, que alguns já consideram de épicos. [...]
Pedro Gomes Says:

July 28th, 2009 at 8:52 pm

Just wait for Win7 and you’ll see the huge sells that it will generate. And Bing’ s market share is increasing. Believe me, Microsoft is on a good way

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