Microsoft quarterly revenues lower than expected

Microsoft reported revenue of $58.44bn for the fiscal year ended 30 June

Microsoft has reported a worse-than-expected fourth quarter, with profits down nearly a third on the same period last year.

All five Microsoft business units logged falls in revenue, according to the earnings statement, with the PC and Server arms faring worst.

Overall quarterly sales dropped 17 per cent to $13.1bn (£7.95bn), about $1bn (£607m) worse than the stock market was expecting. The company's share price fell by seven per cent on the news.

"While economic conditions presented challenges this year, we maintained our focus on delivering customer satisfaction and providing solutions to our customers to save money," said Kevin Turner, chief operating officer at Microsoft.

"I am very excited by the wave of product and services innovations being delivered in this next fiscal year."

Microsoft reported revenue of $58.44bn (£35.49bn) for the fiscal year ended 30 June, a three per cent annual decline. Operating income, net income and diluted earnings per share for the year were $20.36bn (£12.36bn), $14.57bn (£8.84bn) and $1.62bn (£983m), representing declines of nine per cent, 18 per cent and 13 per cent respectively.

"Our business continued to be negatively impacted by weakness in the global PC and server markets," said Chris Liddell, chief financial officer at Microsoft.

"In light of that environment, it was an excellent achievement to deliver over $750m [£455m] of operational savings compared to the prior year quarter."