Microsoft Q4 net down 29%; hit by weak PC sales globally

Software giant Microsoft has reported a 29 per cent drop in net income at $3.04 billion in the fourth quarter ended June 30, with declining sales in global PC market impacting its revenues.     

The company had a net income of $4.29 billion in the corresponding period a year ago, Microsoft said in a statement.     

Revenue plunged 17 per cent to $13.09 billion in the latest quarter from $15.83 billion in the same quarter previous year.    

"Our business continued to be negatively impacted by weakness in the global PC and server markets," Microsoft Chief Financial Officer Chris Liddell said, adding in light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter.     

Revenue declined across all segments primarily due to weakness in the global PC market and the unfavorable economic environment, the statement said.     

Revenue from Windows operating systems declined reflecting PC market weakness and a decline in the Original Equipment Manufacturer (OEM) premium mix. Revenue from Windows was also impacted by a $276 million deferral for the Windows 7 Upgrade Option program, it added.