Print 80 comment(s) - last by Ammohunt.. on Oct 22 at 10:58 PM

Q1 2013 likely left Microsoft's Ballmer sweaty and frustrated.  (Source: YouTube)
Some divisions profit, but Microsoft faces uncertainty as it races ahead to Windows/Windows Phone 8

Earnings week for the tech industry has brought a lot of bad news, with a few pleasant surprises (like Intel Corp. (INTC)).  Microsoft Corp.'s (MSFTearnings definitely fall into the "bad news" category.

Microsoft, which operates two fiscal quarters ahead of the calendar quarter, saw itself narrowly miss analyst targets in both revenue and net income (profit).  The company pulled in $4.47B USD (expected: $4.72B USD) in profit on revenue of $16.008 USD (expected: $16.416B USD).

A key to the miss was plunging revenue from the Windows unit, which saw a big drop in Windows 7 sales.  Microsoft better hope that predictions of Windows 7 being the "next Windows XP" aren't true, because it's counting on Windows 8 to revive sales, with movement of the once-sterling Windows 7 slowing to a sluggish pace.

Steve Ballmer, chief executive officer at Microsoft, roared at his critics, commenting in the earnings release, "The launch of Windows 8 is the beginning of a new era at Microsoft.  Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners."

Windows 8 Upgarde
Microsoft is currently selling Windows 8 upgrades via pre-order.

Microsoft did defer $1.36B USD (as it typically does) in pre-order revenue from its Windows Upgrade Offer program.  Windows 8 official launches next Friday on Oct. 26.

One bright spot in the earnings report was Microsoft's servers unit, which saw an 8 percent bump on revenue, mainly on big growth in SQL Server and System Center.  And in the also-somewhat-good news category, Bing and the online service division crept a bit closer to no longer being massive money losers, with revenue 9%, driven by a 15% increase in revenue per-click.  That's particularly good as the dominant force in the search market, Google Inc. (GOOG), saw a large decrease in revenue per-click after traffic acquisition costs (TAC).

The Entertainment and Devices division earnings were a revenue draw (down 1 percent).  It is currently focused on reviving Microsoft's smartphone bid with Windows Phone 8, which launches next week.  It also was able to brag that the Xbox 360 remains sales king of the American consoles market, with a 49 percent estimated market share.  The Xbox 360's successor, which some are expecting to be named the Xbox 720, is not expected to land until sometime in late 2013 or early 2014.
HTC Windows Phone 8X
Windows Phone 8 launches next week. [Images: Nokia (left), HTC (right)]

Microsoft remains one of the best earning and most successfully diversified hardware/software giants in the consumer electronics industry.  However, it continues to be defined by the burden of high expectations, speculation, and intense scrutiny surroundings its "misses".

Shares of Microsoft were hammered in morning trading, down almost 3 percent to $28.70 USD/share.

Sources: Microsoft, FT [analyst estimates]

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RE: Change we can't believe in.
By MartyLK on 10/21/2012 2:02:19 PM , Rating: 2
You don't get it. I've tried every logical way I could find to make a geometric shape filled with the "color picker" choice I needed and it wasn't possible.

The part you don't get is, even if it is possible to do this in Win7, that it isn't obvious or easy like in Win XP. MS has taken Windows and made it for people who are more into computer programming than the common guy. The paint program in Win7 is just one example of the unintuitive nature of Win7.

RE: Change we can't believe in.
By Cheesew1z69 on 10/21/2012 2:08:58 PM , Rating: 2
Obviously it's YOU who doesn't get it. I don't USE Paint and was able to do it in a matter of minutes.

It IS possible and obviously can be done...

Anyway, I am not going to continue to feed you anymore, it's there, I am sorry you aren't bright enough to figure it out.

RE: Change we can't believe in.
By MartyLK on 10/21/2012 2:36:38 PM , Rating: 2
The Win7 paint program DOES NOT have that ability that I spoke about above. Just because YOU say it's there doesn't mean it is there in Win7. You might be using an added-in program or some other customized version of Windows.

RE: Change we can't believe in.
By Cheesew1z69 on 10/21/2012 2:39:33 PM , Rating: 2
I opened the default MSPAINT and did it....nothing extra. Again, sorry that you can't figure it out.

RE: Change we can't believe in.
By fleabag on 10/22/2012 12:39:03 AM , Rating: 2
Marty, you have to choose "fill" then "solid color", then select a color for "Color #2" in order to draw a shape filled in the color you choose. I just tried out paint in Windows 7 for the first time and was surprised they finally improved upon it unlike Paint in XP which hadn't been changed since Windows 95... I love XP over 7 but there are definitely improvements in Windows 7. I'd just wish I could have the compatibility and footprint of Windows XP in Windows 7.

RE: Change we can't believe in.
By twhittet on 10/22/2012 2:57:43 PM , Rating: 2
Wow - your posts are so out there I almost wonder if they are an advanced form of sarcasm I don't quite understand yet. Are you from the future?

It didn't take me minutes to do what you wanted to do in Paint, it took me seconds. I also never use paint, and have no 3rd party paint programs.

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs

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