Microsoft's growth stunted for the first time ever

 

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By Barry Collins

Posted on 24 Apr 2009 at 07:47

Microsoft has seen its sales decline year-on-year for the first time in the company's history.

The software maker reported sales of $13.65 billion for the quarter ending 31 March, down 6% from the same period in 2008.

The company's profits also fell 32%, although its share price went up on the back of Microsoft's pledge to continue cutting costs and reassurance that Windows 7 remains on track.

Microsoft declined to offer a profit forecast, and warned that the PC industry is by no means out of the woods. "While we would all like to think that our recovery will be soon and painless, we unfortunately believe that it will be slow and gradual," chief financial officer Chris Liddell told financial analysts.

"I didn't see any improvement at the end of the quarter that gives me encouragement that we are at a bottom and coming out of it," Liddell added, contradicting Intel's recent assertion that the PC market had hit rock bottom and was showing signs of recovery.

Microsoft and much of the PC industry is pinning its hopes on a sales boost from the launch of Windows 7, and the software maker confirmed that the launch remains on track.

Microsoft is expected to deliver the Release Candidate of Windows 7 on 5 May, although it still refuses to put a date on the full release, merely confirming that it will launch in the next fiscal year.

Most experts predict Microsoft will unleash the operating system by late summer, to tap both the back-to-school and Christmas markets.