Skip to content

Microsoft Puts Positive Spin on $1,000,000,000 Sales Drop

July 31, 2009

Microsoft executives put a rosy glow on the company’s prospects and performance at the company’s annual financial analysts meeting, despite a recent quarterly report that fell short of revenue expectations by US$1 billion.

“I can’t say it’s good. We’re still down. But on a relative basis, it was a reasonable year, given the context of the environment,” said Chris Liddell, Microsoft’s chief financial officer.

Last week, Microsoft reported fourth-quarter revenue of US$13.1 billion, while analysts were expecting $14.37 billion.

Liddell and CEO Steve Ballmer tried to distinguish between the aspects of the company’s performance that it could control and those it could not. For example, the numbers of PCs that consumers buy is out of Microsoft’s control, Ballmer said.

But the company did well in areas that it can control, such as managing operating expenses, Liddell said. “We had great discipline around things that we can control,” he said.

Toward the end of the day, with a handful of the top executives on stage, Ballmer let slip his characteristic exuberance after an analyst asked him for sales guidance. He referred to a recent company sales meeting where “people were pumped, man,” about the lineup of new Microsoft products.

“We have great prospects on the map, but I’m not going to give you sales guidance or Chris [Liddell] won’t let me come to [the financial analysts meeting] next year,” he joked. “But I hope you don’t sense a lack of enthusiasm.”

His optimism was clear, but what’s not yet clear is whether that will translate into improved results at the company.

Add to FacebookAdd to NewsvineAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Furl

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: