Microsoft 3Q profit falls 11%

Agencies
Posted: Friday, Apr 25, 2008 at 0835 hrs IST
Updated: Friday, Apr 25, 2008 at 0835 hrs IST

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Seattle, April 25: : Microsoft Corp said its fiscal third-quarter profit fell 11 per cent from a year earlier, when the software maker reported more than USD 1 billion in deferred revenue tied to delays in the launch of the Windows Vista operating system.

Microsoft said its net profit for the three months ended March 31 fell to USD 4.39 billion, or 47 cents per share, from USD 4.93 billion, or 50 cents per share, in the same period in 2007.

The results still beat Wall Street's expectations. Analysts surveyed by Thomson Financial forecast a profit of 44 cents per share.

But investors, chewing over the company's guidance and a drop in sales in the division that produces the flagship Office productivity programs, sent shares down USD 1.43, or 4.5 per cent, to USD 30.37 in after-hours trading.

Earlier in the day, the stock had gained 35 cents, or 1.1 per cent, to close at USD 31.80. Revenue edged up to USD 14.45 billion from USD 14.4 billion in the year-ago quarter. Analysts were looking for USD 14.4 billion in sales.

"Despite a difficult economic environment, it was a very good performance," said Chief Financial Officer Chris Liddell in an interview.

Stronger-than-expected PC shipments in the quarter could not offset the USD 1.67 billion in deferred Vista revenue booked in the 2007 quarter. Sales in the division responsible for Windows fell 24 percent to USD 4.02 billion.

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