Windows 7: Microsoft Reports Fourth-Quarter Results

Redmond, Wash. – July 23, 2009 – Microsoft Corp. today announced revenue of $13.10 billion for the fourth quarter ended June 30, 2009, a 17% decline from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $3.99 billion, $3.05 billion and $0.34 per share, which represented declines of 30%, 29% and 26%, respectively, when compared with the prior year period.

The real problem for Microsoft is that the two competitors that currently have Microsoft caught in a pincer movement did much better in the same quarter. While Microsoft shrank by 17%, Google grew by 3% and Apple grew by 12%.

Microsoft is shrinking, and I expect that it will continue to shrink. Its diminishing began with the recession, but it will not end when the recession ends. It’s caught in between a cloud and cool place.