At $492 mn,Microsoft reports its first quarterly loss in 26 years

In the three months ended June 2011,the company had a net income of $5.87 billion.

Written by Press Trust Of India | New York | Published:July 21, 2012 12:39 am

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,Microsoft’s 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.

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