Microsoft suffers sales drop

Six per cent quarterly drop for its third quarter is first in 23 years
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Microsoft’s revenue fell to $13.65 billion in the last quarter, representing a six per cent year-on-year decline.

This is the first fall in sales that the firm has seen since its establishment as a public company 23 years ago.

Operating income did rise by three per cent to $4.44 billion, however net income fell by 32 per cent to $2.98 billion.

Microsoft said that the figures included $290 million of severance charges related to the reduction up to 5,000 jobs and $420 million of impairments to investments.

“While market conditions remained weak during the quarter, I was pleased with the organization’s ability to offset revenue pressures with the swift implementation of cost-savings initiatives,” said Microsoft CFO Chris Liddell. “We expect the weakness to continue through at least the next quarter.”

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