Online woes spark first Microsoft loss ever

MICROSOFT posted its first ever loss on Thursday, shedding US$492 million in the fourth quarter due to a massive US$6.2 billion write-down to reflect the slump in value of its online operations.

Microsoft still recorded an annual profit of US$16.98 billion and said the results reflected "solid revenue growth and rigorous cost discipline."

Revenue also beat expectations, rising four per cent to US$18 billion in the quarter to June 30. For the full year, revenues were up five per cent at US$73.7 billion. "We delivered record fourth quarter and annual revenue, and we're fast approaching the most exciting launch season in Microsoft history," said chief executive Steve Ballmer.

The company is preparing to release Windows 8, the next version of its market leading operating system and a new tablet computer, while making an aggressive move into smartphones.

Microsoft shares rose 2.14 per cent to US$31.32 in after-hours electronic trades. Windows remains the dominant platform for personal computers, but it has lost ground to Google and Apple in newer devices, which use rival operating systems.AFP