Even the mighty stumble

Microsoft sales fell this year for the first time in the company's 23-year history. Sales revenue for the three months ending in March was down six per cent to $13.65 billion (£9.33 billion) compared with the same period last year.

Microsoft has grown to be the biggest software company in the world, due largely to the popularity of its Windows operating system. These somewhat predictable results reflect cautious consumer spending as the global recession worsens rather than any failing on the company's part. Overall profit fell 32 per cent to $2.98 billion (£2 billion), with the falling sales compounded by $290 million (£198 million) paid out in severance packages after the Company announced 5,000 job cuts in January this year, 1,400 of which were lost immediately.

Microsoft confirmed that despite the results, they still planned to release the Windows 7 system in the next financial year.

APA