How serious for the company is Microsoft's quarterly loss?

nchristine

I heard the news this morning that Microsoft was reporting a $492 million loss for the last quarter of 2011. As a child of the 80s-90s, this was a little jarring to hear. The terms Microsoft and loss just don't fit together in my mind. Is Microsoft facing real trouble as a company, or is this a short term thing?

Topic: Business
Answer this Question

Answers

2 total
riffin
Vote Up (12)

A big part of that loss was due to the acquisition of  aQuantive.  There was a $492 million dollar loss, but that largely sprung from a $6.2 billion write down of aQuantive, so really it was a one time accounting write off of some of the value of MS's online advertising business. Even for Microsoft, $6.2 billion is a lot of money, but don't expect to see recurring losses like this one in the coming quarters.    

 

Also, there are some big things happening.  Servers and Tools alone generated $18.7 billion in revenue last year, so it isn't as if Microsoft doesn't have some serious capital generating assets.  Azure is very important to Microsoft in the long term, and I don't see any serious problems there.  Windows 8 could be huge (or not), so that remains a question.  If I had to bet, I would wager Windows 8 will be a significant and successful version of Microsoft's OS.  We shall see.    

jimlynch
Vote Up (9)

Ballmer should have been replaced a long time ago, his leadership (or the lack thereof) has really hurt Microsoft over the last ten years. Yes, this is a serious blow to Microsoft. They still have tons of cash, and cash generating franchises. But a loss like this gives the current leadership a big black eye, and it has to have some of the board wondering if the time has come to choose new leadership for Microsoft.

Ask a question

Join Now or Sign In to ask a question.
Expect NASA’s new method for getting astronauts into space to hit the occasional snag
Journalists, nurses and plumbers are among those who drink more coffee than people in technology
Also, Disney, iHeartRadio and DramaFever get Chromecast support.
A new study of GitHub data reveals characteristics of successful open source projects
Google's decision last year to kill Google Reader, its RSS feed and Web-based service, allowed a tiny rival to grow into a company with revenue of at least $1.3 million a year.
Microsoft couldn't be happier with its new role as steward of Minecraft, but having the founder jumping ship could cast a shadow on the deal
Microsoft has agreed to buy Mojang, the Swedish developer of the Minecraft PC and console game, for $2.5 billion, the companies announced Monday.
The new, bigger iPhones may impact your wardrobe
Also, analyst says Xbox One sales were up in August, but about that launch in Japan...
In the competition for developer talent, offering a good cup of joe could give your company an edge
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

randomness