Microsoft's Q4 earnings are out, and despite increased revenue from last quarter, Microsoft has posted their first ever loss in the company's 26-year history - $492M to be precise - the company earned just $192M in operating income before taxes this quarter.
Some analysts saw this coming, due to Microsoft's writedown of digital advertising firm aQuantive. What's a writedown you ask? In 2007, Microsoft acquired the aQuantive, but declared the purchase a failure. The result was a written loss of assets in Microsoft's books.
Microsoft remains optimistic, though. “We delivered record fourth quarter and annual revenue, and we’re fast approaching the most exciting launch season in Microsoft history,” said Steve Ballmer, chief executive officer of Microsoft, in Microsoft's most recent press release regarding the report.
“Over the coming year, we’ll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners.”
Could a new Xbox be a part of that "other products and services?" It's likely - Microsoft's entertainment and devices division alone saw a 20% increase in revenue this quarter, at $364 million. But that's still far from last year's $1.26 billion in profit. Of course, at the tail end of a console cycle, it's far from surprising.
With Windows 8 on the way, PC purchasing and revenue should pick up again in the fall.
“Over the coming year, we’ll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners.”
Could a new Xbox be a part of that "other products and services?" It's likely - Microsoft's entertainment and devices division alone saw a 20% increase in revenue this quarter, at $364 million. But that's still far from last year's $1.26 billion in profit. Of course, at the tail end of a console cycle, it's far from surprising.
With Windows 8 on the way, PC purchasing and revenue should pick up again in the fall.