Taking inflation into account (devaluation of the currency this past year), the erosion is far higher than 20%. But these are Microsoft fans admitting the crisis.
"Sometimes it seems like accountants are just marketing people with math skills."Two months ago we said that Microsoft was faking its size by "buying" companies. As someone put it some hours ago (probably a Microsoft insider): "That's why they want to acquire Blizzard. Then can they can say, "look we have growth and met guidance.""
Remember that "higher-than-expected" is mostly a Wall Street scam. Some analysts have said it bluntly for decades: Set the "expectations" intentionally low, then pretend it's all great news later, with "higher-than-expected" something. Sometimes it seems like accountants are just marketing people with math skills. Microsoft always gets its CFOs to sign an NDA when they leave; keep schtum and get extra money. ⬆
"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."
--Bill Gates, Microsoft