Business News Technology

Microsoft profits fall 22% ahead of Windows 8 launch

Microsoft profits fall 22% ahead of Windows 8 launch
Microsoft will book the deferred revenue in its next quarterly results

Microsoft has reported a 22% fall in quarterly profits, after deferring some revenue ahead of the upcoming releases of its Windows 8 operating system and its latest version of Office.

Net profit for the three months to September fell to $4.47bn (£2.79bn), from $5.74bn a year earlier, and missed expectations.

Total revenues fell 8% to $16bn.

PC sales fell as consumers either put off new purchases in a tight economy or opted for tablet devices instead.

Microsoft deferred a total of $1.36bn of revenue, which it will regain in the following quarter.

This included $783m in licence fees for PCs pre-loaded with Windows 8, because it cannot recognise the revenue until the units go on sale on 26 October.

It also deferred $384m for PCs that shipped with Windows 7 but are eligible for a $15 upgrade to Windows 8, and $189m for PCs that shipped with the new version of Office or are eligible for an upgrade.

Microsoft shares fell 3% in extended trading.

Article from: bbc.co.uk

We Recommend

The yoopya.com portal presents worldwide news, covering a large spectrum of content categories including Entertainment, Politics, Sports, Health, Education, Science and Technology and more. Top local and global news in the best possible journalistic quality. We connect users via a free webmail service and innovative.

Microsoft profits fall 22% ahead of Windows 8 launch

Discover more from Top Local & Global trusted News | Secure Email Account

Subscribe now to keep reading and get access to the full archive.

Continue reading