Microsoft reveals the Q1 revenue report of the company
The last two quarters, Q4 2012 and Q1 2013 have been particularly tough for Microsoft. The company announced its official revenue report for Q1, revealing a profit of $4.47 billion on revenues of $16 billion in total for the first quarter of the fiscal 2013. The same time last year, Microsoft brought $5.74 billion. The numbers show that the software giant did a bit worse than the Q1 2012, but it achieved progress compared to Q4 2012 when the company reported $192 million loss.
The announced earnings and revenue for Q1 were disappointing compared to the prognosis made by the analysts in Wall Street. They expected $16.42 billion in revenue and $4.72 billion in profits. Nearly $900 million of the $4.47 billion on revenues for Q1 had to be write-off of the tablets Microsoft Surface RT that could not reach the excepted numbers of sells. We recently shared with you the strategy of Microsoft for encouraging of the sell via drastic cut-off of the prices for the tablets. The analysts from Wall Street predicted 75 cents a share in earnings, while Microsoft reported only 59 cents.
Earlier this year, in April nearly 60% of the analysts that cover the stock of Microsoft had the signal “buy” on the shares. After the announcement of the Q1 report, this number is only 25%. The company has not reached so low numbers since 2004.
Even though the report for Q1 was not satisfying, it was not devastating either. The reasons for the overall slow sales could be because of many reasons, including the slow global PC market. On the conference held by Microsoft on Thursday, the CEO Steve Ballmer put the focus on the future launches of new products, like the Windows 8 tablets. The company is planning a large launch wave that is supposed to boasts the positions of Microsoft and to make up for the disappointing results of Q1.