June 2009 -- Showing a 6% decline from last year, Microsoft Corp. on April 23 announced revenue of $13.65 billion for the third quarter ending March 31, 2009. Operating income showed a 3% decline and came in at $4.44 billion, while net income declined 32% to $2.98 billion.
The company was hit with $290 million in severance charges related to the reduction of its workforce by 5,000 and $420 million of impairments to investments.
While revenue from enterprise customers remained stable, the Client, Microsoft Business, and Server & Tools divisions were all negatively impacted by weakness in the global PC and server markets, the company said in its earnings statement.
Microsoft is betting its future on the newly released beta version of the Windows 7 operating system, which remains on track for a fiscal year 2010 launch. Other product development milestones were achieved on Microsoft Office 2010, Windows Server 2008 R2 and Windows Mobile.
But the company is realistic about current economic conditions. "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," explained Chris Liddell, CFO, Microsoft. "We expect the weakness to continue through at least the next quarter."
