Microsoft Quarterly Sales Fall

April 24th, 2009 at 12:00 am
 


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Credit it to the current economic slump that affected businesses big and small. Count in software giant Microsoft as among those recently feeling the economic crunch. Recent quarterly sales figures for the software giant show that it also has experienced a downturn due to slow sales, dropping six percent from figures posted the previous year. It is the first time in 23 years after the software giant first went public that this has happened.

According to numbers released by Microsoft, net income for the fiscal third quarter fell to $2.98 billion as compared to $4.39 billion a year earlier. Revenue for the quarter which ended in March 31 stood out at $13.65 billion, down six percent from the same quarter a year ago. According to Microsoft CFO Chris Liddell, the company is experiencing "the most difficult economic environment our company has faced in our 30-year history. The slowdown is in virtually all of the company’s divisions."

The lower figures were attributed to weak sales on the global PC and server markets. Due to the global economic downturn, more and more people were favoring smaller and more affordable personal computers. This also affected and cut into the sales of their Windows operating system software sales.

The continuing slowdown is seen to go on for several months more. That is why Microsoft is planning to cut 5,000 more jobs until the middle of 2010 as part of cutting down on operating costs. It has already cut 800 jobs in the current quarter.