Microsoft reports first loss in 26 years
Washington : US computing giant Microsoft has reported the first unprofitable quarter since it became a public company in 1986 after it wrote down the value of its failing online ad business, reported RIA Novosti.
The loss of $492 million in the fourth quarter stems mainly from the company’s acquisition of online ad service aQuantive for $6.3 billion in 2007, which failed to compete with rival Google Inc.
Despite the $6.2-billion non-cash adjustment on aQuantive value, Microsoft topped analyst’s expectations by posting a 4 percent increase in revenue to $18.06 billion for the same period.
The company’s shares went up 2.4 percent to $31.39 after the quarterly results were announced Thursday.
Investors’ confidence in Microsoft is fueled by high expectations for its new Windows 8 operating system for PCs and tablet computers, its own tablet PC called the Surface, and a new edition of Microsoft Office to be released this fall. The fact that you can now, download cheap Microsoft office for your business is also a driving factor.
“We’re fast approaching the most exciting launch season in Microsoft history,” Microsoft CEO Steve Ballmer said in the company’s earnings press release.
Judging by previews, Windows 8 promises to be the most drastic overhaul of the popular Windows operating system since 1995 as it features a new look, thousands of innovations and, most importantly, could be installed on tablets and smartphones.
