Microsoft Revenues Down 14% in First Quarter

Posted 10/23/2009 at 6:31am | by Paul Lilly

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Microsoft today announced revenue of just $12.95 billion for the first quarter ended September 30, 2009, and while smaller companies would love to switch places with the software giant, the numbers represent a 14 percent decline for Microsoft from the same period one year ago.

Putting a positive spin on its first quarter results, Microsoft said the numbers reflect the deferral of $1.47 billion of revenue related to the Windows 7 Upgrade Option program presales of the just-released OS to OEMs and retailers before it officially launched. If you were to add the deferred revenue back into the equation, the year-on-year decline would only be 4 percent, Microsoft noted.

"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," said Chris Liddell, chief financial officer at Microsoft. "We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions."

Microsoft also noted that it is reducing its operating expense guidance to $26.2 billion to $26.5 billion for the full year ending June 30, 2010.

Liddell will discuss the results in more detail later today during a webcast, which will be available for replay until the end of the business day.

Image Credit: Flickr RobertScoble