Microsoft: $60 billion in annual revenue, but sour 4Q and a money-losing online business

Summary:Microsoft capped its fiscal year with $60.4 billion in revenue and net income of $17.

Microsoft capped its fiscal year with $60.4 billion in revenue and net income of $17.7 billion, but the fourth quarter left a sour taste for some. And Microsoft's online business lost more money in the fourth quarter than it did a year ago.

The company reported fourth quarter earnings of 46 cents a share on revenue of $15.84 billion (statement). Wall Street was looking for earnings of 47 cents a share.

Shares were down roughly 4 percent after hours.

As for the outlook, Microsoft projected first quarter revenue between $14.7 billion to $14.9 billion with earnings between 47 cents a share and 48 cents a share. Wall Street was expecting 49 cents a share.

For fiscal 2009, Microsoft projected revenue of $67.3 billion to $68.1 billion and earnings of $2.12 a share to $2.18. Wall Street was expecting earnings of $2.16 a share.

As is the norm Windows and Office carried the day for the client and business division respectively. However, Microsoft's online services business lost more money than a year ago.

Is it any wonder why Microsoft is so hot for Yahoo? Something has to save this online unit.

Here's a look at Microsoft's results by unit:

msftchart1.png

Topics: Microsoft, Banking, Enterprise Software

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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