Microsoft today reported the results for 4Q of fiscal 2009 and it wasn’t a pretty picture:
Microsoft Corp. today announced revenue of $13.10 billion for the fourth quarter ended June 30, 2009, a 17% decline from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $3.99 billion, $3.05 billion and $0.34 per share, which represented declines of 30%, 29% and 26%, respectively, when compared with the prior year period.
“Our business continued to be negatively impacted by weakness in the global PC and server markets,” said Chris Liddell, chief financial officer at Microsoft. “In light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter.”
The financial results for the fourth quarter ended June 30, 2009, included the deferral of $276 million of revenue related to the Windows 7 Upgrade Option program that was announced on June 25, 2009. This revenue deferral reduced earnings per share by $0.02.
Even worse, the results fell short of what Wall Street had been predicting and Microsoft shares were down 8% in after hours trading.
I haven’t done a detailed look at the segments yet, but even the usually unstoppable Server and Tools was down from last year. A high level summary of 4Q results from the Microsoft report:
Client – Revenue down 29%, Income down 33%
Microsoft Business Division (Office) – Revenue down 13%, Income down 16%
Server and Tools – Revenue down 6%, Income down 1%
Online Services Business – Revenue down 13%, Income down 51% – lost $732M on revenues of $731M
Entertainment and Devices Division – Revenue down 25%, Income up 24% (the loss got smaller)