Microsoft sees revenue fall for the first time in 23 years

We've already seen how the economy affected Intel, AMD, and Apple last quarter. So, what about Microsoft? The software maker posted its earnings late yesterday, reporting a 6% revenue drop. According to, that's the first time Microsoft's revenue has fallen in its 23 years as a public company.

Specifically, Microsoft posted $13.65 billion in revenue and $2.98 billion net income for the first calendar quarter (which corresponds to the third quarter of its 2009 fiscal year). Compared to the same quarter a year ago, that's a 6% decline in revenue and a 32% drop in net income. The company blames "weakness in the global PC and Server markets" for those results.

Despite having to announce a revenue drop to stockholders for the first time, Microsoft COO Chris Liddel doesn't sound too broken up. "While market conditions remained weak during the quarter, I was pleased with the organization’s ability to offset revenue pressures with the swift implementation of cost-savings initiatives," he said. Liddel expects the market weakness to continue "through at least the next quarter."

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