x PhoneArena is hiring! Reviewer in the USA
  • Hidden picShow menu
  • Home
  • News
  • Microsoft has first ever quarterly loss after massive one-time charge

Microsoft has first ever quarterly loss after massive one-time charge

Posted: , posted by Scott H.

Tags :

Microsoft has first ever quarterly loss after massive one-time charge
Microsoft had the misfortune of announcing their quarterly numbers at roughly the same time as Google announced theirs – unfortunate if only because it’s going to draw a disparaging contrast. While Google exceeded analyst expectations, Microsoft posted their first quarterly loss, mostly due to a one-time write down of $6.2 billion dollars for the their inability to turn a profit from advertising company aQuantive that they purchased in 2007.

Putting aside the one-time charge for aQuantive, Microsoft would otherwise have managed a $5.3 billion dollar profit on record revenues of $18.06 billion, which is good but not quite as good as the $18.13 billion Wall Street was expecting. Still, aside from the embarrassment of completely writing off an acquisition that cost you more than $6 billion, the numbers aren’t bad, especially since Microsoft is expecting revenue to jump in the second half of 2012 with the release of Windows 8/RT/WP8, as well as their Surface tablets.

One interesting mobile-related note; Microsoft’s Entertainment and Devices division (read: Xbox) recorded a $263 million dollar loss that was apparently not due to the Xbox at all, but rather the fact that the $250 million that Microsoft pays out of pocket to Nokia each quarter comes out of that division. Apparently even Xbox revenues aren’t a match for shelling out a quarter billion dollars every three months just to keep someone exclusive to your mobile OS.

Microsoft has first ever quarterly loss after massive one-time charge

source: Microsoft

  • Options

posted on 19 Jul 2012, 17:15 3

1. fur0n (Posts: 75; Member since: 13 Jun 2012)

maybe Microsoft will learn from it's mistakes.

posted on 20 Jul 2012, 16:36 1

6. items17070 (Posts: 70; Member since: 20 Dec 2011)

I noticed all the thumbs DOWN, its obvious people dont like to hear the TRUTH! lol

posted on 19 Jul 2012, 17:25 8

2. cptbeatstix (Posts: 101; Member since: 19 Jul 2012)

This is the first time Microsoft has experienced a loss. aQuantive was a bad purchase to begin with, but this hardly dents Microsoft as a whole.

posted on 19 Jul 2012, 17:39 1

3. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

Their online services division seems to be doing poorly, even before considering that payment.

posted on 19 Jul 2012, 19:25 2

4. som (Posts: 768; Member since: 10 Nov 2009)

Bill Gates should buy Nokia and make their own phone run on WP OS like Apple 1 phone and 1 OS with big profit.

posted on 20 Jul 2012, 07:07

5. Aeires (unregistered)

I'd really like to know how much they actually pull from Android handset licensing. Probably not as much as people let on, but it's gotta be a good chunk of money when you factor in how many phones are sold every day.

posted on 21 Jul 2012, 10:46 1

7. cptbeatstix (Posts: 101; Member since: 19 Jul 2012)

@som Buying Nokia when they are at a 16 year low is not a good business decision. Also, as you see with Apple, 1 phone with 1 OS only took them so far. With Android already starting a trend to take over the number one spot (if they haven't already), That is another reason why. You don't ever put all your eggs into one basket.

@Aeires Its probably not as much as you think.

Now I'm not bashing Apple at all.But, where they lack in variety, Android and Windows come in swinging.

Want to comment? Please login or register.

Latest stories