Microsoft Corporation reports Loss for the first time

Software Giant Microsoft has for the first time reported loss in its 26 years of being a public company. This loss comes after a series of unsuccessful acquisitions.

The loss of $492 million in the fourth quarter stems mainly from the company’s acquisition of online ad service aQuantive for $6.3 billion in 2007, which failed to compete with rival Google Inc.
Despite the $6.2-billion non-cash adjustment on aQuantive value, Microsoft topped analyst’s expectations by posting a 4 percent increase in revenue to $18.06 billion for the same period.

The company’s shares went up 2.4 percent to $31.39 after the quarterly results were announced Thursday.

Investors’ confidence in Microsoft is fueled by high expectations for its new Windows 8 operating system for PCs and tablet computers, its own tablet PC called the Surface, and a new edition of Microsoft Office to be released this fall.

“We’re fast approaching the most exciting launch season in Microsoft history,” Microsoft CEO Steve Ballmer said in the company’s earnings press release.

Judging by previews, Windows 8 promises to be the most drastic overhaul of the popular Windows operating system since 1995 as it features a new look, thousands of innovations and, most importantly, could be installed on tablets and smartphones.

Meanwhile, its online rival Google has reported strong second-quarter earnings during the current fiscal.

For the quarter ended June 30, the Internet search giant posted revenue of $10.96 billion, representing a 21-percent increase over the second quarter of 2011, reported Xinhua.

The company said the EPS (earnings per share), excluding certain items, reached $10.12, compared to $8.74 in the like period last year.

Google introduced the small screen tablet Nexus 7 in late June, and completed its acquisition of Motorola Mobility May 22.