Microsoft reports first quarterly loss after 1986
20 Jul 2012
Software giant Microsoft reported its first quarterly loss after it went public in 1986 with the writing down of the value of its failing online ad business.
The $492 million fourth quarter loss comes mainly from the company's acquisition of online ad service aQuantive for $6.3 billion in 2007, which could not compete with rival Google Inc.
Despite that however, Microsoft topped analyst's expectations by posting a 4-per cent rise in revenue to $18.06 billion for the same period.
The company's shares surged 2.4 per cent to $31.39 after the quarterly results were announced yesterday.
Investor confidence in Microsoft, however, continues to be high on expectations for its new Windows 8 operating system for PCs and tablet computers, its own tablet PC called the Surface, as also a new edition of Microsoft Office to be released this fall.
''We're fast approaching the most exciting launch season in Microsoft history,'' Microsoft CEO Steve Ballmer said in the company's earnings press release.