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.