Microsoft Posts First Loss; Google's Earnings Rise
Software maker has never had a quarterly loss before
By Newser Editors and Wire Services
Posted Jul 19, 2012 4:03 PM CDT
In this April 12, 2012, photo, a Google logo is displayed at the headquarters in Mountain View, Calif.   (AP Photo/Paul Sakuma, File)

(Newser) – Two different outcomes today for two tech giants:

  • Microsoft: The company said that an accounting adjustment to reflect a weak online ad business led to its first quarterly loss in its 26 years as a public company. Microsoft took a $6.2 billion charge because its 2007 purchase of online ad service aQuantive hasn't yielded the returns envisioned by management. The charge led to a $492 million loss in the April-June quarter, or 6 cents a share. That compares with earnings of $5.9 billion, or 69 cents, a year ago. Revenue rose 4% to $18.06 billion.

  • Google: Its second-quarter earnings rose 11% despite a deepening decline in the prices paid for its Internet search advertising. Google earned $2.8 billion, or $8.42 per share, during the three months ending in June. That compared with net income of $2.5 billion, or $7.68 per share, last year. The results announced today included Google's $12.5 billion acquisition of cellphone maker Motorola Mobility Holdings.

 

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