Microsoft revenue rise fails to meet predictions

Microsoft’s revenues for the second quarter rose 18% year on year to $15.84bn, but the software giant failed to meet analyst predictions, despite a 42% year-on-year increase in net income.

It is understood that analysts were disappointed that its $4.3bn net income was only equivalent to $0.46 per share. It is thought they were looking for $0.47 per share.

Microsoft chief financial officer Chris Liddell admitted that tough economic conditions were coming in the months ahead. He says: “Looking forward, despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008.”

In the three months to the end of June, Microsoft’s operating income increased to $5.7bn from $3.9bn a year ago, while earnings per share rose to $0.46, from $0.32 a year ago.

In a conference call, after Microsoft’s earnings report, Liddell reiterated the company’s interest in purchasing the Yahoo! search engine. He said Microsoft’s offer is “a compelling one”.

Yahoo! has swatted away Microsoft’s attempts to buy its search business. On July 12, Yahoo! rejected a joint proposal from Microsoft and Yahoo! investor Carl Icahn for a restructuring of Yahoo! that would include the acquisition of its search business by Microsoft.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here