Software giant Microsoft offered investors a mixed bag of results that dinged its stock late Thursday.
Shares of Microsoft slipped 1.4%, to $27.25, in after-hours trading following its second-quarter results. Although Microsoft topped earnings estimates, it fell short on revenue.
Microsoft said net income slipped nearly 4%, to $6.38 billion, or 76 cents a share, from $6.62 billion (78 cents) in the same quarter a year earlier. Revenue rose 3%, to a record $21.46 billion.
Analysts surveyed by Thomson Reuters estimated Microsoft would earn 75 cents a share on revenue of $21.53 billion for the quarter ended Dec. 31.
The software giant reported weaker sales in its business and entertainment divisions, though revenue in its core Windows business rose 24%, to $5.88 billion, from the same period in the prior year, the company said.
The fiscal second-quarter results are the first to include revenue of the company's new Windows 8 operating system and its Surface tablet. Both launched in late October. Microsoft, however, did not reveal unit shipments or sales for Surface and Windows 8.
(In November, Microsoft said it sold 40 million Windows 8 licenses, outpacing the adoption rate for Windows 7.)
Microsoft, whose software is used in most traditional PCs but which is under siege from the fast-growing mobile market, is betting big on Windows 8, which runs on both PCs and tablets.
The software giant hopes Windows 8 can reverse a trend of weak PC sales.
The company's foray into the tablet market has been tepid: Market researcher Chitika says Surface generated just 0.13% of all tablet traffic in early December.
Microsoft did get some good news from partner Nokia earlier Thursday. The struggling smartphone company scratched out a profit in the past quarter, compared with a loss of more than $1 billion in the same period last year.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- GM Recall Poses First Major Test for New CEO