Microsoft Earnings Down by 14-percent

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We’re not much into earnings and sales, but when it’s Microsoft publishing their third consecutive decline in quarterly revenue, something clicks and we’re intrigued. After making the official announcement for Windows 7 yesterday, today the business brains from MSFT have taken the time to report on the company’s total revenue, which dropped by 14-percent year-over-year to $12.92 billion (compared to $15.06 billion, last year).

The biggest “loser” was the company’s Windows division, which fell by $2,62 billion in revenue. Second “best” was the Entertainment and Devices group that takes care of the Zune, Windows Mobile or the Xbox, where earnings went down by only $1.89 billion, despite stronger sales for the discounted Xbox 360 and the Zune HD.

But things are not looking bad in Redmond as Microsoft said the revenue decline doesn’t entirely reflect its actual performance. Apparently their cost saving policies have proved efficient and profits stayed above what analysts expected — $3.57 billion, or 40 cents per share, an 18 percent decline from $4.37 billion a year ago.

Meanwhile, Microsoft’s Steve Ballmer has announced that Windows 7 will only bring a slight sales boost to the company’s revenue. Somehow, we think different …