On Thursday, Microsoft did something it’s done on numerous occasions before – make history. But this time… it’s not a good thing.
Although the software giant managed to beat Wall Street estimates for second quarter earnings, Microsoft reported its first-ever quarterly loss since 1986.
The loss, according to the Wall Street Journal, is due to a previously announced charge for its “money-losing Internet business.”
The $492 million loss reflected a $6.19 billion charge for Microsoft’s online division, which includes the Bing search engine business and MSN Web portal. The unit hasn’t met the company’s expectations for advertising sales and the company opted to write down the value of a major acquisition.
Regardless of the misstep, no one at Microsoft appears concerned, especially since Microsoft’s total revenue climbed almost 4 percent.
“I feel very good about the enterprise demand for our products,” Peter Klein, Microsoft’s chief financial officer, tells the WSJ.
