Microsoft posts loss but robust future anticipated
Company takes $6.2bn writedown, is expecting better results for fall.
Microsoft is making headlines today by posting its first quarterly loss since going public in 1986. The losses are a result of a $6.2 billion write-down takes as the company acknowledges shortcomings in online services.
Microsoft is expecting a quick turnaround.
The greatest part of its write-down was based on the acquisition of aQuantive in 2007. Microsoft wrote down $6.2 billion of the $6.3 billion price it paid for the company.
Microsoft has also struggled with its efforts to go mobile, arriving late to the mobile market well behind Apple and Android. Now the tech giant is facing a strenuous battle to gain any significant market share.
Microsoft, while facing problems in the mobile and online marketing/advertising sector is still performing strongly in other areas. The company's Xbox gaming and media platform is doing well and it has high expectations for Skype.
Microsoft also has new offerings on the way including a Windows 8, a new version of Office, and a tablet, which it hopes will bolster revenues this fall.
Although Microsoft posted a loss, the company is still strong and in the wake of its reports its stock rose 2.5 percent in after-hours trading. It is clear that the company and investors are both confident that this fall will bring a change in fortunes for the tech giant and that Microsoft still has tremendous earning potential.
Indeed, the company is well positioned. Windows remains the dominant operating system for personal computers around the world controlling more than half of the OS market. However, as the world increasingly eschews desktops for more mobile tablets, Microsoft's share will further erode. Microsoft will now depend on Window's 8 and its tablet to remain strong in the OS market.
© 2012, Distributed by NEWS CONSORTIUM.
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Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Microsoft, writedown, loss, quarter, fall, tablet, Windows 8
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