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Microsoft Announces First Ever Quarterly Loss

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July 20, 2012 11:38:44 PM

Oh how the tables have turned so dramatically in just 20 years.
Anonymous
July 20, 2012 11:42:42 PM

There will be more losses with Windows 8
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July 20, 2012 11:45:54 PM

That's not too bad. The impairment hit will actually provide some tax shelter for them for the year.

Their Q3-Q4 performance will actually be the thing to watch for.
July 20, 2012 11:51:15 PM

slabboOh how the tables have turned so dramatically in just 20 years.

um.... what on earth are you talking about? If you read the article it is only one division that is negative, and the OS division is 'less positive' but still making 4.6 Billion dollars... in one quarter. Just about every other department grew, including WP sales (surprising considering how many of us are waiting for WP8), and xBox consoles and Live subscriptions when a new console will be coming ~Christmas 2013 and everyone in the gaming world knows it.
Anonymous
July 20, 2012 11:58:14 PM

No this quarterly report is probably only a hint of things to come. Lot's of hopes pinned on Windows 8 across all platforms. Phones,PC's, Tablets. None of which holds big promise for Microsoft or its partners.
July 21, 2012 12:03:11 AM

The fact that Windows 8 is coming means stale sales and more trouble for Microsoft. lol
July 21, 2012 12:20:00 AM

Oh no...the sky is falling! The end is near!
July 21, 2012 12:26:35 AM

Good to see nobody's missing an opportunity to bash Windows 8. Wouldn't want the comments to be filled up with meaningful posts, would we?
July 21, 2012 1:12:11 AM

Billions billions there is sure a lot of billions.... This shouldn't hurt them to much considering how profitable the company is in it's other investments.
July 21, 2012 1:12:17 AM

Get use to it Microsoft there is going to be even more loses when no one buys shitty Windows 8.
July 21, 2012 1:22:07 AM

LOL remember back when Tom's used to have people knowledgeable about technology post here? Now it's all about "Microsoft sucks!" and "AMD rules!". Rofl.
Anonymous
July 21, 2012 1:28:01 AM

windows 8 is going to screw their balance sheet after this. At least they are pretty well diversified tho, so they can bury the crappy sales that will be coming.
July 21, 2012 1:42:05 AM

Reads like a 'strategic loss' only.
Accounting procedure related, not actual $$ loss.
M$ certainly does not have the profit margins that Apple can command at the moment; but in the long run my money would still be on M$, and not on someone like Apple.
July 21, 2012 2:02:06 AM

"The result was a $492 million bottom line loss" - But it's actually not that bad.

Do you know how many ding dongs that would buy?!
July 21, 2012 2:09:47 AM

May Windows8 cause Microsoft many many more quarterly losses... I'll be a $1 they will.

At $30 a share... they are no where near Apple's $604~640 a share.

If I was an investor, I'd sell my MS stock and buy some Apple stock before the iPhone 5 hits the street.
July 21, 2012 2:42:37 AM

slabboOh how the tables have turned so dramatically in just 20 years.


Problem with reading comprehension? They had a record revenue of $18.06 Billion and if it weren't for the impairment charge from Aquantive they would have had roughly $5.7 Billion in profit. The company is very healthy... at least til Win8 gets here and MS sees just how un-phone a desktop really is.

My guess is that there will be a Value Pak or something similar that comes out later to add a Start menu and ditch the Metro UI. If not, well... I bought extra Win7 licenses because of Win8. I'm not going to get stuck with that crap while they figure out that it's WinME 2.0 and scurry for a solution.
July 21, 2012 2:52:39 AM

They didn't "really" make a loss this quarter.
They just realized that the 6 billion they spent for Aquantive 5 years ago are gone. Money changed hands 5 years ago, but the loss shows up in their books now.
July 21, 2012 3:58:18 AM

Windows 8 is going to go down in flames and be faaaaar worse than Vista. I actually like Vista SP2 very much, I like it better than Win7 in many ways. but regardless, I've used Win8 enough to know I freaking hate it. I have so much hate for that OS that I will leterally move to a different OS should MS keep it around in Win 9. I can wait for one OS cycle before abandoning ship....but no more than that. There's no excuse for Win8 and how horrible it is, no excuse, it just sucks.
July 21, 2012 4:24:49 AM

Like vista over 7? Windows7 has features that vista doesn't have. Vista functions very much like XP, with a different skin.

Actually... I'd like to see Win8 totally fail and Microsoft be so damn stupid that they continue metro into Win9... that would be funny as hell. At that point, the bottom would fall out.

I'm betting that SP1 will be released around March/April which gives the user a Metro Option and replace the Win7 style Start Menu and perhaps de-uglyfy the Win8 skin back to Win8 PR. version 8440 or at least Win7. I think 8440 skin looks great... cleaner than Win7, less detracting without the ugly metro look.
July 21, 2012 4:50:52 AM

I hope they decide to keep aero and let people disable metro in Windows 8... otherwise, there is no way I'm buying it, even with the under-the-hood improvements.
July 21, 2012 6:23:10 AM

"This gives us an opportunity to bash Win 8, while MS actually made record profit, and the 'loss' was for writing down 6bn from 2007."

Of course, it is totally possible that Microsoft will see their profits drop with Win 8, but this news has nothing to do with that.
July 21, 2012 7:17:27 AM

Win8 will be fun, nobody will be screwed into a useless interface. Strange how the hate is so trollish here. Are Apptards THAT angry that OS X is easily infected now and is also going the iOS direction completely? Seriously, Apple's pc division is NOT made for 9/10ths of users, that is why it is floating at 1/10th. They don't WANT office users to use them or... poor people.

So go tra la la ing somewhere else with your wack apptard comments.
July 21, 2012 7:23:29 AM

SteelCity1981The fact that Windows 8 is coming means stale sales and more trouble for Microsoft. lol

how do you figure?
July 21, 2012 12:30:45 PM

For the dumb... MS basically made a profit of 5.5 billion, but then wrote off a 6 billion acquisition which was done years ago and which supposedly never panned out (if they did get anything out of it the IRS ain't going to know about it anyway). So things aren't bad in MS land.

And I look forward to the 40 dollar upgrade option this fall. I am going to give W8 a go despite the negative press. It might have some suckage, but overall I am glad to have something new to work with. It has been a long time..........
July 21, 2012 12:34:03 PM

Balmer should really be fired.
Anonymous
July 21, 2012 3:52:17 PM

"...including WP sales (surprising considering how many of us are waiting for WP8)"

Actually, this is probably the mobile division, most of that is probably from patent deals with hardware manufacturers which sell lots and lots of Android.
July 21, 2012 4:33:51 PM

... and windows 8 will pull them further down...
July 21, 2012 5:23:24 PM

belardoL I'd like to see Win8 totally fail and Microsoft be so damn stupid that they continue metro into Win9... that would be funny as hell. At that point, the bottom would fall out.


Ofcource they are going to use Metro in win9. There is no doupt from it. The whole MS aplication shop system will be beased on Metro aplications. I am guite sure that MS know that win 8 will not be huge succes in desktop computers, but I supose that they don't care. The win 8 is their forst combined platform and in decktop usage it is "pipecleaner".
After a couple of years of preinstalled win8 macnines, there is no going back. I am guite sure allso that win9 will come guite near (2-3 years) after win8. The win8 offers allready some things that win7 does not (not so many that there is any real reason to upgrade though), and win9 will have more. Some of the guite usefull, like new disk operation system. They most propably allso tweak the Metro interface based on user experience. So some things are going to chance in Metro, but all in all it is going to stay at leas win8, win9, win10. After that maybe some face lift or new jump to the gun. Who knows?
July 21, 2012 5:38:04 PM

southernsharkFor the dumb... MS basically made a profit of 5.5 billion, but then wrote off a 6 billion acquisition which was done years ago and which supposedly never panned out (if they did get anything out of it the IRS ain't going to know about it anyway). So things aren't bad in MS land.And I look forward to the 40 dollar upgrade option this fall. I am going to give W8 a go despite the negative press. It might have some suckage, but overall I am glad to have something new to work with. It has been a long time..........

very true...
July 21, 2012 7:15:29 PM

Even though it might show Microsoft suffer a loss, they did not since the losses are write-downs from acquisitions (Yammer, Perceptive Pixel, etc).
Things might get worse, since they are taking forever to release competitive tablets to rival Apple and Google.
July 21, 2012 9:45:19 PM

belardoMay Windows8 cause Microsoft many many more quarterly losses... I'll be a $1 they will.At $30 a share... they are no where near Apple's $604~640 a share.If I was an investor, I'd sell my MS stock and buy some Apple stock before the iPhone 5 hits the street.


Glad to see that you, like so many others here, actually know what you're talking about. Oh wait, you forget that how much a stock costs doesn't really matter. How that stock's price changes is what matters as somone who uses the stock market for income. I'm not an expert in that, but I'm not so stupid to think that you know anything about investing after reading a comment like this.

MS is doing fine and although Balmer seems to be an idiot, they are a company that can survive in many ways. Windows might be surprisingly non-profitable at this time, but that will change. Considering that not only is Linux and OSX market share growing and every version of Windows is bound to get fewer and fewer adopters as people stick with older platforms (heck, XP is still at something like 45% OS market penetration globally, isn't it?), it's no surprise that Windows is slowly dropping in profitability. I'm surprised that people are surprised about this happening.

What happens to an OS line when each consecutive OS has people that stick with it for years? Unless the amount of people buying new computers for the first time can outpace the amount of people sticking with older versions of Windows, profitability of this OS line will drop because it's now relying more on preexisting customers to retain profitability. Most people only upgrade so often, so of course profitability is dropping.
July 21, 2012 9:55:55 PM

belardoLike vista over 7? Windows7 has features that vista doesn't have. Vista functions very much like XP, with a different skin.Actually... I'd like to see Win8 totally fail and Microsoft be so damn stupid that they continue metro into Win9... that would be funny as hell. At that point, the bottom would fall out.I'm betting that SP1 will be released around March/April which gives the user a Metro Option and replace the Win7 style Start Menu and perhaps de-uglyfy the Win8 skin back to Win8 PR. version 8440 or at least Win7. I think 8440 skin looks great... cleaner than Win7, less detracting without the ugly metro look.


Vista is much more like Windows 7 than it is like XP, both under the hood and in the UI.
July 22, 2012 2:15:35 AM

Microsoft's marketing team is mostly responsible for the Xbox division's success. They are technically the biggest ripoff of all 3 console makers if you do the math. But I suppose that's subjective from a fun perspective. Odd how polarizing the causes of sales success can be.
July 22, 2012 2:48:17 AM

Visually, you are correct... operationally, vista changed nothing (other than the start menu stays inside its block) Vista's task bar is no different than XPs. Not including the change of "Start" to the semi-circle Start button. In win7, they made the task bar thicker. The gestures with the windows in Win7 are nice... throws me off when I use an XP system. :) 

Win7 added Pinning functions, jump lists, show desktop, etc.
July 22, 2012 12:01:33 PM

I'm not sure i'm not confused by the article. Was there a loss or wasn't there? :o 
July 22, 2012 12:25:10 PM

ojasI'm not sure i'm not confused by the article. Was there a loss or wasn't there?


No actual loss.
July 22, 2012 3:05:00 PM

It's not too surprising. They're making a lot of R&D investments in their upcoming hardware developments for the next console plus their tablets.
July 23, 2012 6:23:44 PM

Meanwhile, RIM posts a loss of $200million due to write downs and the whole internet jumps to claim more that RIM is dead.

Ha-ha!
!