Microsoft Q1 profits slide 18% $3.57 bn
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Last Updated: Friday, October 23, 2009, 21:39
  
New York: Software giant Microsoft witnessed an 18 per cent slump in the first quarter profits at USD 3.57 billion compared to the year-ago period, even as the company benefited from cost-cutting measures and strong consumer demand for Windows.

The entity had profits to the tune of USD 4.37 billion in the same period a year ago.

In a statement today, Microsoft said its revenue for the first quarter ended September declined 14 per cent to USD 12.92 billion in comparison with the same period a year earlier.

"These financial results reflect the deferral of USD 1.47 billion of revenue, an impact of USD 0.12 of diluted earnings per share, relating to the Windows 7 Upgrade Option program and sales of Windows 7 to OEMs (Original Equipment Manufacturers) and retailers before general availability," the statement said.

The first quarter results come a day after the global launch of its Windows 7 and Windows Server 2008 R2.

"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," Microsoft's Chief Financial Officer Chris Liddell said.

Liddell noted that the firm maintained cost discipline, which allowed it to drive strong earnings performance despite continued tough overall economic conditions.

About Windows 7, Exchange Server 2010 and Windows Server 2008 R2, Microsoft's Chief Operating Officer Kevin Turner said, "We are pleased by the early positive response we are receiving for these products".

Bureau Report


First Published: Friday, October 23, 2009, 21:39


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