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Weak demand for consumer PCs powered by Windows was offset by strong demand for Microsoft enterprise software.

Microsoft’s Windows revenue down

Microsoft reported a fall in revenue for the software giant’s Windows division based on continued weakness in PC sales.

The final quarter 2011 financial results beat analyst expectations but narrowly fell short of Microsoft’s forecast with with the company reporting revenue of $20.9 billion and profits of $6.6 billion.

Despite a six per cent decrease in revenue in the Windows division, Microsoft revenue overall was up five per cent from a year ago. The weakness in the Windows division is down to mature PC markets in the West and continued poor sales of PC systems.

Outside of the weak consumer business, the firm’s business software units were star performers with strong demand for Microsoft’s enterprise software.

"We saw strong demand for our business products and services, despite the soft PC market and continuing economic uncertainty in key parts of the world," said Microsoft CFO Peter Klein.

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