Slipping into the red for the first time in nearly three decades,Microsoft has reported a loss of $492 million in the June quarter due to a non-cash write-down of $6.2 billion related to non-performance of online advertising business.
The staggering charge is due to non-performance of its Internet services division aQuantive which Microsoft had snapped up five years ago. This is for the first time since 1986 when it went public that Microsoft has clocked a quarterly loss.
In the three months ended June 2011,the company had a net income of $5.87 billion.
The financial results reflect the previously announced non-cash,non-tax-deductible income statement charge of $6.19 billion for the impairment of goodwill and the deferral of $540 million of revenue related to Windows Upgrade Offer, the company said.
Nevertheless,Microsofts 2012 June quarter revenues climbed four per cent to $18.05 billion. The revenue stood at $17.36 billion in the same period a year ago.
The company is betting big on Windows 8 operating system,which is to be launched later this year.