Microsoft Profits Fall
By Christopher Nickson
April 25, 2008
In the third quarter of its financial year, closing March 31, Microsoft saw profits fall 11%.
The market didn’t have massive expectations for Microsoft’s profits during the third quarter of its financial year, a period that closed on March 31. But the software giant beat them, although it has declared that its profits during the period fell by 11%, to a mere $4.39 billion, down from $4.93 billion in the same period last year.
Although sales remained steady at $14.5 billion, the company had been hit by a $1.42 billion European fine regarding competition rules, which has had an effect. In sales terms the entertainment component of the business – it’s Xbox side, in other words – showed a year-on-year sales increase of 68%. At the same time, reduced demand cut sales of Office and other applications.
Microsoft has already warned that sales will be lower in the next quarter.