First quarterly loss for Microsoft
Microsoft today reported its first quarterly loss as a public company, blaming an accounting adjustment to reflect a weak online ad business.
It had warned that it was taking a $6.2 billion (€5 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 paid $6.3 billion (€5.1 billion) for aQuantive, only to see rival Google expand its share of the online ad market.
The charge led to a $492 million (€400 million) loss in the April-June quarter, or six cents a share. That compares with earnings of $5.9 billion (€4.8 billion), or 69 cents a share, a year ago.
Revenue rose 4% to $18.06 billion dollars (€14.7 billion).
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