Windows Mobile Pulls Microsoft Down!

Microsoft (NSDQ: MSFT) blamed heavy spending on Windows Mobile in part for ending a streak of three consecutive quarters of operating profit in the company's entertainment and devices unit. The division posted a $31 million loss, compared to a $106 million operating profit during the same period a year ago. From Microsoft's 10-Q: "Research and development expenses increased $66 million or 18%, primarily reflecting increased headcount-related expenses associated with the Windows Mobile device platform." The company also attributed a 55 percent drop in operating profit in the unit over the last nine months, in part to "headcount-related expenses associated with the Windows Mobile device platform, driven by recent acquisitions." (from mocoNews)