Microsoft Corp. on Thursday reported a net loss of $492 million for the quarter ended June 30, 2012. It is the first loss for the company ever since it went public in 1986.
Microsoft fourth quarter 2012 results that were announced on Thursday posted a revenue of $18.06 billion. Operating income and loss per share for the quarter were $192 million and $0.06 per share.
Excluding the multibillion-dollar write-down, which was signaled earlier this month, and factoring in some deferred Windows revenue, the world's largest software company actually exceeded Wall Street's expectations, boosting its shares in after-market trading, reported Reuters.
"We delivered record fourth quarter and annual revenue, and we're fast approaching the most exciting launch season in Microsoft history," said Steve Ballmer, chief executive officer of Microsoft. "Over the coming year, we'll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners."
"The combination of solid revenue growth and rigorous cost discipline drove double-digit operating income growth for the quarter, adjusting for the goodwill impairment and deferred revenue," said Peter Klein, chief financial officer of Microsoft. "We are focusing our resources in strategic areas that will deliver shareholder value and long-term growth opportunities."
The financial results reflect the previously announced non-cash, non-tax-deductible income statement charge of $6.19 billion for the impairment of goodwill and the deferral of $540 million of revenue related to the Windows Upgrade Offer. Adjusting for these items, non- Generally Accepted Accounting Principles (GAAP) fourth quarter revenue, operating income, and earnings per share were $18.60 billion, $6.93 billion, and $0.73 per share, which represented increases of 7 percent, 12 percent and 6 percent respectively, over the prior year period.
For the fiscal year 2012, the company's revenue, operating income, and earnings per share were $73.72 billion, $21.76 billion, and $2.00 per share. Adjusting for the goodwill impairment charge and deferred revenue, non-GAAP fiscal year 2012 revenue, operating income, and earnings per share were $74.26 billion, $28.50 billion, and $2.78 per share, which represented increases of 6%, 5%, and 5%, respectively, over adjusted non-GAAP fiscal year 2011 figures.
The Server and Tools business revenue grew 13% for the fourth quarter and 12% for the full year. The Microsoft Business Division revenue grew 7% for the fourth quarter and 7% for the full year reflecting continued momentum in Office 2010 sales. The Windows & Windows Live Division revenue declined 13% for the fourth quarter and 3% for the full year and Windows Division non-GAAP revenue declined 1% for the fourth quarter and 1% for the full year.
The Online Services Division revenue grew 8% for the fourth quarter and 10% for the full year reflecting growth in our search business. Bing organic U.S. search market share was 15.6% for the month of June 2012, up 120 points from the prior year period. The Entertainment and Devices Division revenue grew 20% for the fourth quarter and 8% for the full year primarily reflecting the addition of Skype.