Microsoft's Year-Over-Year Sales Set to Drop for First Time Ever

Paul Lilly

It's been a tough year for tech all around, a fact which will be underscored when Microsoft reports a year-over-year drop in quarterly revenue for the first time ever. Not even the end of the dot-com boom over a decade ago managed to stop Microsoft from posting an increase.

Current forecasts suggests Microsoft will post quarterly revenue of $14.15 billion for its fiscal third quarter, down from $14.45 billion in the same quarter a year prior. Earnings per share are estimated to be 39 cents, down from 47 cents. The lackluster numbers come just a week after Intel suggested the PC market had bottomed out.

Moving forward, Microsoft cautioned it doesn't expect sales to quickly return to where they were in recent years, and instead to expect slow growth. That could depend on whether or not the software giant is able to release Windows 7 this year or not. While new operating systems can only do so much to push PC sales, the hope (from computer makers) is that Windows 7 could help spur a holiday rush if released early.

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