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Topic: Microsoft

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.

Larry Dignan

By for Between the Lines |

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

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18 comments
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  • Um...yeah...no wonder YHOO is running from M$?

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

    In a year's time, instead of improving their online biz, M$ has more than doubled its losses. Who says YHOO is doing so badly?
    techboy_z
    Reply Vote

    • Very good points. At least Yahoo is very profitable.

      NT.
      DonnieBoy
      Reply Vote

  • Wow, now we know why MS is so hot to buy Yahoo. Google is making money hand

    over fist online, meanwhile, the MS loss widens. And, online is the future . . . .
    DonnieBoy
    Reply Vote

    • Hand over fist?

      Google just reported a larger loss then MS?
      AllKnowingAllSeeing
      Reply Vote

      • Google a loss?? What planet are you on?? Google is making money hand over

        fist online. MICROSOFT is losing money in the online business.
        DonnieBoy
        Reply Vote

        • If you can just keep your head out of Google's butt for once..

          you'll find that it is still Windows and Office that is the major business of Microsoft, not online search. If Google can produce similar products to rival the main products of Microsoft, then I'll agree with you that Microsoft needs major help. But as it stands each company has their own strengths and weaknesses.

          So what planet are you on??
          transposeIT
          Reply Vote

          • Fat OSes and Fat Office Suites will NOT be the center of the client much

            longer. That is why MS is so hot to buy Yahoo.
            DonnieBoy
            Reply Vote

  • Good stock buying opportunity...

    These numbers are AWESOME. I called my broker and put in a standing BUY order for the SECOND the market opens. My broker said he does feel it is right for me to be 100% invested in shares of MSFT. He told me my portfolio in my 401k and other accounts is around 0% growth due to this concentration in Microsoft. I told him to know his role, follow my orders. Trust me, Microsoft will hit $150 a share when Windows 7 ships and I will be LAUGHING all the way to the bank. My rep called and said he would flip me some of his options in MSFT as well. Nothing like sharing the wealth.
    Mike Cox
    Reply Vote

    • I agree 100%, with Microsoft tanking this is the perfect time to buy Google

      stock!!
      DonnieBoy
      Reply Vote

      • You are astill a useless troll with nothing to say!

        Ha ha ha ha ha ha...my oh my DonnieBoy, you need some medical attention because you are seriously deluded.

        "...Microsoft tanking...."

        Ha ha ha ha ha......

        Any company on the planet would give their right arm for the financial growth and results Microsoft has achieved for the past 7 years!!!
        Martin_Australia
        Reply Vote

        • Come on, Mike is the the troll!! I just report the facts.

          nt
          DonnieBoy
          Reply Vote

    • I like the rep flipping options. (nt)

      :-)
      roaming
      Reply Vote

    • 8.9!

      (nt)
      TtfnJohn
      Reply Vote

  • Microsoft will never be a online company

    Just look at MSN, Live and you have to agree Microsoft should stay a software company.


    With software you can issue patches not much you can do if you screw up your online rep.
    Randalllind
    Reply Vote

    • Care to bet....

      I've got cash if you'd like to wager.

      MSN is nothing close to an example of what an online company is or should be. MSN is a portal, just like Yahoo is/was.

      My bet is that it will be Google that will eventually see the downturn. I mean come on, how many people who are professionals actually click on Google ads? The world is trying to create technology to AVOID ads (TiVo, pop up blockers, etc...) Google's SOLE income is from selling ads, and at some point the masses will get fed up (with some exceptions of course) of being spoon fed ads over and over again.

      I hope MS doesn't buy Yahoo and focuses more on making Office online and other services successful.

      Pat
      omdguy
      Reply Vote

  • Larry, just how, exactly, does buying Yahoo do anything for MS on line?

    For all the excitement in blogland about MS chasing Yahoo and Ichan in his normal "destroy it to save it" mode just exactly what does aquiring Yahoo do that would assist MS?

    OK, they come with a good set of advertisers, they're the #2 search engine and they've done a few good things.

    The nastiness of the aquisition battle has also led to a flight of talent from Yahoo, some reported demoralization of MS's own talent in it's online division and the elephant in the corner over there having a drink of water from the pool called the ad agreement Yahoo and Google now have.

    While we're at it what about all the GPL "infected" software Yahoo uses or assists in developing. Given Ballmer's well known allergy to anything that even looks like it might spell GPL.

    It strikes me that it would be a long ingestion period should the merger ever happen, even longer as Micosoft ditches the GPL stuff and tries to buy its way out of the deal with Google.

    Not to mention the talent at Yahoo that are making it clear with their feet as they walk out the door that they'd rather work for anyone other than Microsoft.

    You can take search and advertising share all you want, add them up and come up with the numbers you want and it doesn't change a lot.

    The sum of the two will be a whole lot less than the parts and that sum seems to be getting lower every day.

    Ichan will make money. Ballmer will get his play, no matter how much it costs. Google will grow while Microsft reaches for the antacids to help it swallow Yahoo and come up with some, any at all, synergies.

    Yes, something needs to be done with the MS online division but buying Yahoo seems less and less the answer to that. It never was.

    ttfn

    John
    TtfnJohn
    Reply Vote

  • RE: Microsoft: $60 billion in annual revenue, but sour 4Q and a money-losin

    Probably not many people who are professionals, but then you miss the point, its the unprofessionals who massively outnumber by hundreds of thousands to one those who don't click that make Google work.
    s.nisbet@...
    Reply Vote

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

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