“The slump in global PC sales and broad economic weakness has battered Microsoft’s results over the last year, compounding already weakened demand for Windows Vista,” DiColo reports. “But on Thursday, the company moved to recharge revenue growth with the launch of its next-generation operating system, Windows 7.”
MacDailyNews Take: Funny, there seems to be no “slump” in Mac sales despite “broad economic weakness.” Apple just sold a record number of Macs, so Microsoft’s excuse rings hollow. More likely, people are tired of wasting their money on cheap poorly-faked Macs and are instead wisely investing in the real thing. And “next-generation” sounds so much more impressive than what it really is, a Vista service pack. “Window 7” is nothing more than lipstick on the Vista pig.
DiColo continues, “Revenue for its Windows unit, Microsoft’s largest division, was still down 39% from last year, and earnings for the division fell 52%. For the quarter ended Sept. 30, Microsoft reported earnings of $3.57 billion, or 40 cents a share, down from $4.37 billion, or 48 cents a share, a year earlier. Revenue declined 14% to $12.92 billion.”
“Analysts polled by Thomson Reuters expected earnings of 32 cents on revenue of $12.37 billion,” DiColo reports. “The company’s server and tools was the only one to post revenue growth, albeit 0.5% growth, while sales at the business division fell 11%. In online services, a small but important division, revenue decreased 5.8%… Meanwhile, Microsoft reduced its full-year operating expense guidance by $400 million to between $26.2 billion and $26.5 billion.”
Full article here.
MacDailyNews Take: Declined, decreased, fell, reduced, down, weakened, and battered. Any questions?
All praise be to Ballmer! Go on buddy, carry on throwing chairs instead of doing something… It’s unsurprising anyway.
Wow, their revenue is perilously close to Apple’s non-GAAP revenue! Just think what will happen once Apple adopts the new accounting rules!
the tipping point is coming…….
Yet MS’ share price is UP 7.17%, Wall Street must have expected a larger fall or else it just doesn’t make sense…
Tell the truth MDN, you’re an ex MS employee aren’t you?
“Revenue for its Windows unit, Microsoft’s largest division, was still down 39% from last year”
Their 90% market-share mustn’t mean actual sales – there must be a LOT of piracy, even on new PCs…
It’s a rounding error!
MW: Income. Eerie.
MSFT shares are up. More potential shorting gain.
Get in the pool.
You forgot “beleaguered”.
“Yet MS’ share price is UP 7.17%,”
Investors buy the future, not the past. Trailing earnings are the base/foundation from where future expectations are measured.
MSFT gave positive guidance for the DEC quarter based on revenue expectations derived from the Win7 launch.
MS is a software company. It’s sales depend to a large extent on hardware sales.
So, in you’re MS-bashing takes, don’t forget to trash the hardware companies, too.
… just to be fair ….
Watch for the turd floating down the river out to sea. Its Windows 7
“Declined, decreased, fell, reduced, down, weakened, and battered.”
Funny, that’s how I order my hash browns at Waffle House, too.
“MS is a software company. It’s sales depend to a large extent on hardware sales.
So, in you’re MS-bashing takes, don’t forget to trash the hardware companies, too.
… just to be fair ….”
That would explain why Apple’s hardware sales are up. Oh, but wait, Apple is a software company, that sells EXPENSIVE hardware.
The dead parrot sketch never loses its edge does it and here it is in all its glory with Stevie Ballmer doing his wonderful John Cleese impression. One presumes that the amazing plumage of a windows 7 launch was planned to hide these little details away but that didn’t quite sqwark loud enough either did it. Cue geeky PC monkeyboys detailing how wonderful that there’s a little life left afterall, as its health wasn’t quite as sickly as expected. I can see them now spinning the parrot on its perch to feign life. Comedians one and all.
The key is they beat expectations, most investors have expected very few Vista sales with Win7 on the horizon. It seems likely to me at least that there will be huge Win7 upgrade sales this quarter and thus the stock is a good buy.
Many of those 90% have been longing for W7, and there are quite a few Mac users who will also buy W7. Most fellow Mac users I know have XP as well. I know I am going to upgrade for sure on all three of my Macs. And I bought a few MS shares yesterday so for me it is Win Win(7?)
“Tell the truth MDN, you’re an ex MS employee aren’t you?”
Yes thelonius, Bill. Bill Gates…
This explains why the Microsoft Astroturf Brigade is out in full force on nearly every online message board you can find. They know they have to make Windows Vista 7 into something at least vaguely resembling “success”.
I love how they keep using the “broad economic weakness” excuse, at the exact same time Apple is having record quarters.
That’s like saying your garage sale was a failure because of cloudy weather, while during the exact same time someone else on your block had a hugely successful garage sale – might want to consider something other than “cloudy weather” as your excuse.
“And I bought a few MS shares yesterday so for me it is Win Win(7?)”
Misguided.
“Microsoft revenue down 14%, profit plummets 18%”
Be still, my heart!
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@MDN…
You forgot perhaps…
BELEAGUERED?
Honestly guys, this isn’t going to last.
MS should rename System 7 Norwegian Blue, with the slogan “It’s just resting.”
“He’s not dead! He’s probably pining for the… there! Look… he moved”
Mel Gross – Honestly guys, this isn’t going to last.
Of course not. Now that Windows 7 is officially out there’s no reason to wait to upgrade that old PC or buy a new one. All the pent up and delayed sales will make Q4 look really good.
The Netbook upgrades alone will mean a lot to M$.