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Microsoft (MSFT) Posts 4Q Loss On Write Down; Adj. Results Top Estimates

 July 19, 2012 04:06 PM
 

Software major Microsoft Corp. (NASDAQ:MSFT) reported a quarterly loss, as it took a $6.2 billion noncash goodwill impairment charge related to the acquisition of aQuantive Inc. Yet, the company's adjusted earnings and revenue came in better than market expectations.  Shares rose 1.58 percent in extended trading on Thursday.

On an adjusted basis, the company posted earnings per share (EPS) of 73 cents on revenue of $18.6 billion. Wall Street analysts, on average, expected EPS of 62 cents on revenue of $18.13 billion for the fourth quarter.

The world's largest software company posted a loss of 6 cents a share on a GAAP basis on revenue of $18.06 billion, compared with EPS of 69 cents on revenue of $17.37 billion in the same period of last year.
 
Revenue at the company's Windows and Windows Live division fell 13 percent, while revenue at Business division grew 7 percent. Revenue at MSFT's Entertainment & Devices division gained 20 percent.

The year 2012 is crucial for the Redmond, Washington-based company, whose Windows operating system runs almost 80 percent of PCs. It recently launched its next generation Office Suite -- Office 2013 as the software giant continues to adapt to the post-PC world. Windows 8, which is considered as one of the biggest overhaul of Windows operating system, is expected to be available likely in late September or early October.
 
In the preceding third quarter, MSFT earned 60 cents a share, on revenue of $17.4 billion.

Microsoft paid $6.3 billion for aQuantive, compared to $3 billion spent by Google (NASDAQ:GOOG) to snap DoubleClick. Last month, Microsoft announced it is acquiring Yammer - a provider of enterprise social networks for businesses - for $1.2 billion in cash, the latest enterprise software acquisitions focused around social media.

The stock, which has been trading between $23.79 and $32.95 over the past year, ended Thursday's regular trading at $30.67.


Rich
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