Microsoft, the world’s leading computer software and Internet service provider, has recently announced its revenue for the third quarter of the year.
According to the company’s website, the revenue for entertainment and devices rose to 68 percent, a dramatic increase which had been driven by the high demands for Xbox 360 gaming console.
Meanwhile, the revenue generated by the tools and servers has grown to 18 percent, making this business aspect one of the most promising among other products and services offered by this Internet giant.
The report also revealed that the company’s online advertising revenue rose to 15 percent, a rate which seem to be quite impressive in this gloomy economic condition where advertisers are pulling out investments to cut costs and expenditures. Meanwhile, despite this business facet’s outstanding performance, financial analysts said that the revenue growth next year will be slower, predicting that this would only run between 6 to 10 percent.
In terms of contingency plans which proved to be crucial in this declining economy, the company is also dramatically slowing its hiring activity to cut operational cost which has been expected to save up to $400 to $500 billion. The company also planned to reduce its expenditure by making less data centers and marketing cost.
But still, the industry has reported that it has over $21 billion worth of stock, which means that the company’s financial health is quite stable.
Meanwhile, the company has been the focus of various controversies including aggressive takeover bid to buy Yahoo which is one of the leading players in the Internet business sector. In addition, the government and some companies have filed suit against Microsoft because of its alleged unethical business tactics.
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