Bonum Certa Men Certa

Microsoft's Quarterly Results: A Disappointment in Summary

The winning hand



Summary: Negative press which is mostly obscured by Vista 7 marketing; Microsoft's lesser-explored business units are actually on the decline, as is Microsoft's stock

AS we promised earlier on, here is a quick look at the results Microsoft reported last week. The Times Online says that "Microsoft profits fail to impress" and John Letzing from MarketWatch says exactly the same thing (also in the headline): "Microsoft's numbers fail to impress"



Needless to say, this is not the story Microsoft told the public. Microsoft is obliged to embellish, to spin, and sometimes to lie (as long as it's not a crime). According to the Wall Street Journal, Microsoft did not do enough, so the stock went down. All which came out of Microsoft's mouth was "Windows 7 this and Windows 7 that..."

It's a decoy.

Terry Porter's example from the other day showed that some businesses are very unhappy with Vista 7 (enough for them to move to another operating system or go back to XP). InfoWorld (IDG) has this new article which is titled: "Where are my Windows 7 print drivers?"

Many HP printers still lack drivers even for Vista. Here's why so many printers are abandoned with each new operating system


This is the type of problem Porter cited the other day. Vista 7 suffers from some of the same problems that Vista suffered from. It is, in essence, just another Vista.

“...Microsoft's results were down very sharply the year before (declining by about a third).”Anyway, Microsoft used these latest financial results that are generally disappointing to hype up Vista 7. The intention was to place focus on just one part of Microsoft's business (many articles sing that same tune), which is not comparable on a year-to-year basis because last year there was a 2-year-old Vista, which cannot be equated to a new release in a much better marketplace (recovery of the Dow Jones for starters, an index which rose more sharply than sales of Windows).

As an important reminder, Microsoft's results were down very sharply the year before (declining by about a third). That was in April 2009. So resurgence this year hardly means much, unless someone is spinning it and the spin eventually prevails at the expense of objective interpretation.

Looking outside the 'box' which is Vista 7, Microsoft's business performed rather badly [1, 2] and here is how Microsoft boosters put it:

Server & Tools: This division, which includes Windows Server, SQL Server and related products, was once renowned for stringing together consecutive quarters of double-digit revenue growth. No more.


Quoting the above, Pamela Jones wrote in Groklaw: "So, SCO's attacks on Linux didn't help longterm, eh?" (she is referring to the SCO case which Microsoft played a role in)

"Bing Loses More Money as Microsoft Chases Google," says this report.

During Microsoft's fiscal third quarter, which ended March 31, the Online Services Division, or OSD, reported a 12 percent increase in revenue, which rose to US$566 million on the back of higher advertising revenue. That wasn't enough to offset a surge in operating expenses during the period. The division's quarterly loss grew by 73 percent to $713 million, compared to a loss of $411 million during the same period last year.


Indeed. As we pointed out before, Microsoft is approaching the loss of $3 billion per year when it comes to the Internet business. Here is how Business Insider puts it:

Microsoft's Bing/MSN Results Truly Horrifying -- Loss Rate Balloons To ~$3 Billion A Year



[...]

Microsoft's online services division losses exploded to $713 million, up from $411 million a year ago. That's almost a $3 billion loss run-rate.


And some people still call Bong [sic] a success. How many billions is Microsoft willing to lose before giving up? Microsoft has billions in debt.

Comments

Recent Techrights' Posts

Confirmed in the Mainstream Media: A Lot of Microsoft "Workloads" Were Just LLM Slop (Helping to Fake Growth for Years, as Microsoft Had Paid "Open" "AI" to Become a "Client") and Demand is Rapidly Waning, Datacentres Canceled and/or Shut Down
Anything to facilitate further accounting fraud
Taiwan's Media Covers Closure of Microsoft's "AI" Lab, It's Time to Talk About the Gradual Death of Windows and Implosion of the "AI" Bubble
Earlier this week we showed that mostly Asian media had the 'nerve' to mention Microsoft silently shutting down its 'AI' lab
More Gains for GNU/Linux, Based on Web Surveys
the Steam site shows rapid growth for "Linux" this month
 
LLM Slop as Attack Vector on the Reputation of Linux
The attacks on Linux have escalated to information warfare
Yandex About to Be Three Times Bigger Than Microsoft (Bing) in Asia
That's about 60% of the world's population
Gemini Links 04/04/2025: Decoupling Updates, Elaho as Gemini Client
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 03, 2025
IRC logs for Thursday, April 03, 2025
Microsoft's Trouble in Africa and Asia
A new all-time high for GNU/Linux
Brett Wilson LLP Reported to the Solicitors Regulation Authority (SRA)
The saddest thing in all this is that law firms can maintain high standards shall they wish to
Links 03/04/2025: Tariff Pains and C.D.C. Cuts
Links for the day
StatCounter: Microsoft is Masking a Disaster, It's Way Behind DeepSeek Already and Interest in LLMs Has Waned
it turns out the money "raised" for "Open" "AI" may not even exist at all
Links 03/04/2025: SoftBank Money for Microsoft "Open" "AI" Probably Doesn't Even Exist, Wikimedia Foundation Blasts LLM Nuisance While Microsoft Admits Demand Has Shrunk
Links for the day
Gemini Links 03/04/2025: Patch Panel and Pictures
Links for the day
Islamic Republic of Iran: GNU/Linux at All-time High This Month, Windows Falls to 12%
Vista 10 is up this month despite being "end of life" (EoL) soon
Indonesia: All-Time Highs for GNU/Linux
What's noteworthy right now is the growth of GNU/Linux
statCounter Says GNU/Linux Usage is Up Again (Internationally)
some preliminary April data
Only on April 1st Can the Free Software Foundation Associate With Microsoft's Open Source Initiative (OSI)
We saw some pranks that day linking the FSF to Microsoft (e.g. "endorsing" Windows)
IBM Gets Rid of Kelly Chambliss as Mass Layoffs Reported in IBM Consulting, IBM Loses Key Contracts/Graft
IBM Consulting has been in disarray lately
Slopwatch: Anti-Linux Articles, Not Even Written by Humans
Why aren't Web sites more vocal about this problem?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 02, 2025
IRC logs for Wednesday, April 02, 2025
Links 03/04/2025: Apple Fined Over Secret Surveillance, "Elegant Writer For A More Civilized Age"
Links for the day
Gemini Links 02/04/2025: Books and Cold Tea
Links for the day
Links 02/04/2025: More Layoffs, Nokia Again Takes Advantage of Illegal and Unconstitutional Patent Court With Nokia Staff as 'Judges'
Links for the day
Links 02/04/2025: Seizures and Returns to Windows of 24 Years Ago
Links for the day
LLM Slop Helps Obscure and Distort News About Layoffs (IBM, GAFAM)
It's hard to find accurate information
Links 02/04/2025: Microsoft Developers Are Threatening to Go on Strike, World Backup Day Noted
Links for the day
Gemini Protocol Has Growing Appeal (the Web Got Too Bloated and Full of LLM Slop)
For any "data plan" with bandwidth limits or "tiers" it would be cheaper to use/browse Geminispace
The Web Can Survive LLM Slop, But Only If We Collectively Shun and Discourage Serial Sloppers
Doing nothing ought not be a possibility
Amid Secret Shut-downs and Mass Layoffs at Microsoft (4 Waves of Layoffs in 3 Months of 2025) Some Microsoft Staff Expected to Go On Strike
workers going on strike
Gemini Links 02/04/2025: No more on Mastodon and Gemini Mention Script in Go
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 01, 2025
IRC logs for Tuesday, April 01, 2025
My Motion Disbarring or “Striking Off” Brett Wilson LLP for Enabling Violent Americans Who Try to Crush Microsoft Critics in the United Kingdom by Multiple SLAPPs
"Guns for hire" (for Microsoft people who received Microsoft salaries)
The U.S. Patent and Trademark Office Hijacked Again by Patent Litigation Industry, as President Cheeto Prioritises Aggressors
The "mafia" has taken over the "industry" and the Federal system (justice and constitutions trampled upon)
Ubuntu Slop and FUD Manufactured With LLMs and Funded (by Oneself) 'Studies'
Slop and FUD are ruining the Web