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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

July 18, 2013 at 2:10 PM

Microsoft’s fourth quarter earnings miss analysts’ estimates

Microsoft fell short of analysts’ expectations with its fourth-quarter financial results, reported Thursday.

For the quarter ended June 30, Microsoft posted revenue of $19.9 billion and income of $4.97 billion, with earnings per share of 59 cents.

Microsoft’s fourth quarter figures, though, reflects a $900 million write-down of Surface RT inventory related to a price-reduction offer for those devices.

Adjusted for that write-down, Microsoft says earnings per share would be 66 cents.

That still would have fallen short of analysts’ estimates of expected quarterly revenue of $20.7 billion and earnings per share of 75 cents.

In the fourth quarter last year, Microsoft had revenue of $18.06 billion and loss per share of 6 cents. (But that reflected some unusual events such as a write-down of the 2007 acquistion of online ad company aQuantive and deferred revenue from a Windows 8 upgrade offer. Adjusting for those items, Microsoft had fourth-quarter 2012 revenue and earnings per share at $18.60 billion and 73 cents.

“It was a mixed quarter,” said Lisa Nelson, a director of investor relations at Microsoft. “It continues to be a tale of two cities. … There’s good momentum in the enterprise. But our Windows business, in particular, is impacted by the ongoing decline in the consumer PC market.”For the fiscal year, Microsoft also fell short of analysts’ estimates, posting revenue of $77.8 billion, profit of $21.86 billion and earnings per share of $2.58.

Analysts had expected revenue of $78.69 billion and earnings per share of $2.75

Still, this year’s results were up from the company’s year-end results last year when it posted revenue of $73.7 billion and earnings per share of $2. It logged net profit of $16.98 billion.

I’ll have more updates to this story posted on seattletimes.com here.

Comments | More in Microsoft | Topics: earnings

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