Microsoft posts first ever quarterly loss

Even software giant is not immune to the downturn as job cuts and investment impairments take their toll

Microsoft has posted its first ever quarterly loss in turnover for the third quarter ended 31 March 2009.

The software giant unveiled turnover of $13.65bn, a decline of six per cent from the same period the previous year.

Net profit also dropped 32 per cent to $2.92bn compared to the previous year, but operating profit increased three per cent to $4.44bn.

The results included a $290m of severance charges related to a plan to cut up to 5,000 jobs and $420m of impairments to investments.

Kevin Turner, chief operating officer at Microsoft, said: “With our continued R&D investment and our broad suite of products and services, we remain in a great position to compete and gain share in the marketplace.”

Chris Liddell, chief financial officer at Microsoft, said: “While market conditions remained weak during the quarter, I was pleased with the organisation’s ability to offset revenue pressures with the swift implementation of cost-savings initiatives.”

Liddell warned of a similar performance in the quarter to come.

“We expect the weakness to continue through at least the next quarter,” he said.