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Microsoft headed toward quarterly loss?

updated 08:00 pm EDT, Mon July 2, 2012

Absorbing one-time $6.2 billion charge for poor ad performance

Microsoft is taking a one-time $6.2 billion charge to offset the lack of revenue from aQuantive, an ad service it purchased. The non-cash charge is likely to drive Microsoft $1 billion into the red for its fourth fiscal quarter ending in June, assuming estimates of $5.3 billion in profits pre-charge are correct. Quarterly results from the software giant are expected on July 19.

Since Microsoft purchased online advertising service aQuantive for $6.3 billion in 2007, Microsoft's online department has reported $9 billion in losses. To counter Microsoft's purchase, Google purchased aQuantive competitor DoubleClick in 2008. DoubleClick earned Google $9.7 billion in the last year on $38 billion in revenue, primarily from advertisements.

At the time, the aQuantive deal was the largest in Microsoft's history, and still stands as the second largest today. Only the $7 billion acquisition of Skype eclipses the 2007 deal.

The company said in a statement that "the aQuantive acquisition continues to provide tools for Microsofts online advertising efforts, the acquisition did not accelerate growth to the degree anticipated, contributing to the write down." Microsoft doesn't expect any long-term damage to its ongoing business or future financial performance from the charge. Microsoft stock lost 13 cents today to close at $30.43.

by MacNN Staff



  1. Foxypaco

    Joined: Dec 1969



    The fact that it's cheaper to upgrade from a pirated copy of Windows than it is to buy a legit copy off the shelf tells me everything.

  1. Think4D

    Joined: Dec 1969


    When is Ballmer stepping down?

    Or being removed? He is clearly in over his head and making incredibly bad decisions.

  1. msuper69

    Joined: Dec 1969


    Now, THAT'S a royal s****-up...

    of epic proportions.
    Oh God please let Steve Ballmer stay at Microsoft forever and ever.

  1. Nigel2112

    Joined: Dec 1969


    Stock History Lesson

    2002:- MSFT $66. APPL $21.
    2012:- MSFT $30. APPL $580.
    Thank you very much Mr. Ballmer.
    Signed, an Apple shareholder.

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