Microsoft posts first loss since 1986

One-off charge relating to 2007 aQuantive acquisition pushes software giant into the red

Microsoft has posted its first loss since it went public in 1986, on the back of a $6.2bn (£3.9bn) goodwill impairment charge relating to its aQuantive online advertising business.

The software giant acquired aQuantive in May 2007 for $6bn as part of its vision to provide the advertising industry with an internet-wide advertising platform.

Since then, the business has been a constant drain on Microsoft's profits and the write-down – announced earlier this month – reflected the fact the acquisition "did not accelerate growth to the degree anticipated".

The charge pushed Microsoft into the red for the first time in its 26-year history as a public company.

The Online Services Division (OSD) of which aQuantive is part was already posting fat losses but the one-off charge drove its operating losses to a whopping $6.67bn for Q4.

Microsoft stressed that its search business, which is also part of OSD, has been improving, but admitted expectations for future growth and profitability for the division are lower than its previous estimates.

Microsoft's Windows & Windows Live Division also remains a concern as its sales fell to $4.15bn, compared with $4.74bn a year earlier. All its other division grew sales.

On a non-GAAP basis, Microsoft's Q4 operating profit rose 12 per cent to $6.9bn and turnover rose by seven per cent to $18.6bn.

Chief executive Steve Ballmer (pictured) remained upbeat about the results, arguing that the vendor is approaching the "most exciting" launch season in its history.

"Over the coming year, we will release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners," he said.