First Quarter Loss Ever for Microsoft

Written by John Ponio    Friday, 20 July 2012 15:28

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It's a sad day indeed for those who are fans of Microsoft: their recent quarterly earnings report showed the first loss ever for the company since they went public in 1986. With a net loss of $492 million, at least Microsoft was able to keep the loss under $1 billion. The main reason for this huge loss was because Microsoft decided to declare their 2007 acquisition of aQuantive, an advertising company, as a loss. How much was the acquisition, you ask? $6.3 billion, and they wrote most of it down as a loss. The earnings report isn't all sad news, though. For the fiscal year just ended, Microsoft managed to make revenues of $73.7 billion, which is more than the previous year. With the Windows 8 and Office 15 releases right around the corner, Microsoft is too excited to really care all that much about the loss. Steve Ballmer, CEO of Microsoft, said:

We delivered record fourth quarter and annual revenue, and we’re fast approaching the most exciting launch season in Microsoft history.