In April, Microsoft posted unexpectedly strong quarterly results, seemingly unhurt by Windows 8′s struggles nor the collapsing PC market. The company could go only so long until Win8 began to affect its bottom line, however, and it appears the clock has run out.
On Thursday, Microsoft announced fiscal fourth-quarter earnings that missed Wall Street estimates by a significant margin. The company also announced a $ 900 million write-down related to unsold Surface RT inventory, a revelation that exposes the desperate subtext of the product’s recent $ 150 price cut.
Overall, Microsoft’s posted $ 19.9 billion in sales, with earnings of 59 cents per share. Analysts had expected revenue of $ 20.7 billion and earnings of 75 cents per share. Investors lost 7 cents due to the Surface charge.