Microsoft Reports First Ever Quarterly Loss

[platinumdude]

http://seattle.cbslocal.com/2012/07/...uarterly-loss/

REDMOND, Wash. (AP) — Microsoft says an accounting adjustment to reflect a weak online ad business led to its first quarterly loss as a public company.

It had warned that it was taking a $6.2 billion charge because its 2007 purchase of online ad service aQuantive hasn’t yielded the returns envisioned by management. The non-cash adjustment is something companies do when the value of their assets decline. Microsoft Corp. paid $6.3 billion for aQuantive, only to see rival Google Inc. expand its share of the online ad market.

The charge led to a $492 million loss in the April-June quarter, or 6 cents a share. That compares with earnings of $5.9 billion, or 69 cents, a year ago.

Revenue rose 4 percent to $18.06 billion.

[southfork]

Does this mean the recovery is over?

[Argentsum]

It means their tablet better pan out as they hope.

[Au-myn]

Does this mean the recovery is over?

YIKES ! Don't tell obummer !

[Usc96]

Microsoft is a victim of its own success. I prefer Apple products because their software has not been targeted by virus writers. My kids have a Windows based computer and every so often I have to take it into my IT guy at work to clean off some virus. Just yesterday my 10 year old asked me to fix a problem where a popup was saying the firewall was under attack, and in order to stop it, I needed to enter a credit card to update the virus software. Then when you click out, the computer kicks you off of the internet. Basically that Microsoft Windows based computer is worthless. Obviously I am not going to enter a credit card, so my kids will be without a computer for a week until my IT guy at work can look at it and clear off whatever crap is causing this.

There is also a misguided belief that only Microsoft products are safe? Similar to Blackberry's former standing as the de facto business system, Microsoft's position could also be in big trouble when businesses give Apple a try.

[Goldhedge]

Microsoft is a victim of its own success. I prefer Apple products because their software has not been targeted by virus writers. My kids have a Windows based computer and every so often I have to take it into my IT guy at work to clean off some virus. Just yesterday my 10 year old asked me to fix a problem where a popup was saying the firewall was under attack, and in order to stop it, I needed to enter a credit card to update the virus software. Then when you click out, the computer kicks you off of the internet. Basically that Microsoft Windows based computer is worthless. Obviously I am not going to enter a credit card, so my kids will be without a computer for a week until my IT guy at work can look at it and clear off whatever crap is causing this.

There is also a misguided belief that only Microsoft products are safe? Similar to Blackberry's former standing as the de facto business system, Microsoft's position could also be in big trouble when businesses give Apple a try.

Start it up in 'Safe Mode with Networking' (turn it on and press F8 repeatedly). Then go find 'rkill' online (free) and save to desktop and run it. If it won't let you run it, put it on a flash drive and run it from there.

Then run MalwareBytes (free) and then go to www.eset.com and run the 'free' online scanner.

That should remove it. You don't need a tech guy unless this doesn't remove it, but what you have I've seen before. It's an irritation is all.

[Usc96]

Start it up in 'Safe Mode with Networking' (turn it on and press F8 repeatedly). Then go find 'rkill' online (free) and save to desktop and run it. If it won't let you run it, put it on a flash drive and run it from there.

Then run MalwareBytes (free) and then go to www.eset.com and run the 'free' online scanner.

That should remove it. You don't need a tech guy unless this doesn't remove it, but what you have I've seen before. It's an irritation is all.

So what is the point of this malware? Is it purely to get you to enter your credit card so the crooks can drain your bank account, or is there more to it than that? Also, if I had the firewall set up, how does it even get through? I'm guessing the kids let it in, but who knows?

[Goldhedge]

So what is the point of this malware? Is it purely to get you to enter your credit card so the crooks can drain your bank account, or is there more to it than that? Also, if I had the firewall set up, how does it even get through? I'm guessing the kids let it in, but who knows?

They want your credit card. How did it get in? There was a 'popup' that most likely had a message that said 'We're checking your system for bugs" with some kind of fake numbers making it appear like you had all kinds of spyware, trojans, noseeums etc.

In order to remove them 'click' on 'OK'.

It's pretty scary to the unaware. You think MSFT is letting you know (they won't) or your virus protection - it doesn't either, it just takes care of it.

UNLESS you click on "OK" giving it permission to install. Something like that...


Just clicking on a link will cause the popup. Kind of devious. Irritating, annoying, but really not as bad as some.

Sorry for the thread hijack...PM me if you need help.

[Scorpio]

It had warned that it was taking a $6.2 billion charge

The non-cash adjustment is something

The charge led to a $492 million loss

Doesn't make sense, to sacrifice all those years of no quarterly losses, when the reality is, they could have cut the write down by 10% and kept it black

[mph275]

Ubuntu FTW, love it

[phideaux]

Doesn't make sense, to sacrifice all those years of no quarterly losses, when the reality is, they could have cut the write down by 10% and kept it black

i worked for a long time in corporate accounting and the general idea is that when you have to do one of these write-downs, you write off everything that you possibly can, including the kitchen sink. Get all the bad news out of the way and clear the path for bigger earnings growth down the road.

But yeah, if it is a borderline profit/loss situation and there is a long history that will be broken, it doesn't seem to make sense. Hold off a bit of the write-down until the following quarter or whenever.

[Scorpio]

yep phid, I appreciate what you are saying,

but they have $59B in cash on hand, that has been growing consistently since like '09 or so

for that relatively paltry amount, they broke the string,

[shades]

Microsoft are trying hard, but they're not really innovating or succeeding in most areas.

I predict the following:

- Microsoft's cloud efforts will mostly bomb, perhaps with a couple of exceptions.
- Windows 8 will bomb... badly.
- Windows phone OS market percentage will continue to fall to nothingness. (Apple will also be heavily impacted by Android phones.)
- Microsoft "Surface" products will bomb or do very average sales at best.
- Exchange will begin losing some market share.
- Microsoft will continue to drift along, trying to leverage the innovations proved successful by other companies. MS will become just one of many software companies.

- Windows 7 will remain the mainstay 64-bit OS for MS for quite some time, like XP.
- Windows Server 2008/2010 will continue as a server product.
- Office will remain a flagship product.
- Microsoft will embrace/utilise SaaS further (licensing software as a service to end users etc.)

[jiikoo]

This from slashdot.org:


September is when the bonuses are decided. This way they can pay smaller bonuses. A win-win for the company.

[Scorpio]

with you on that jiikoo,

also wondered how it affected them as a 'taxable' event too,

as in trying to slag off some tax ramifications,

S