The company revealed it expected weakness in the personal computer, server and hardware markets to continue for at least another quarter, in contrast to Intel's belief that the worst is already over. The company's 6 percent drop in revenue for the March quarter was the first time in its history that it marked a year-on-year decline.
It has cut operating expenses by 9 percent. "It's good to see that they are controlling their costs because that's within their sphere of control. They can't really do a lot about demand," said Kim Caughey at money manager Fort Pitt Capital Group. "They have a nice product refresh cycle coming up, which should allow them to maintain their market share."
Microsoft is confident that the Windows 7 operating system is still on track for a fiscal 2010 release, which could technically mean as early as July this year. "The best of all possible worlds would be that it's ready for back-to-school, which is the July-August time frame," said Caughey.
Written by: James Delahunty @ 23 Apr 2009 20:29