Microsoft Misses Q4 Estimates, Takes $900M Charge on Surface RTs

From eWeek: Microsoft missed analyst estimates of its Q4 2013 earnings and took a $900 million charge on Surface RT tablet inventory.
Citing a decline in the PC market, Microsoft missed analyst estimates of its fiscal fourth-quarter 2013 earnings, announced July 18.

Microsoft announced quarterly revenue of $19.90 billion for the quarter ended June 30, 2013. Operating income, net income and diluted earnings per share for the quarter were $6.07 billion, $4.97 billion and $0.59 per share, respectively. These financial results include a $900 million charge, or a $0.07 per share impact, related to Surface RT tablet inventory adjustments. Microsoft recently reduced the price of Surface RTs by $150—from $499 down to $349.

However, excluding the Surface charge, Microsoft's earnings were 66 cents per share, short of the 75 cents per share expected by analysts. The quarterly revenue of $19.9 billion also was short of analyst estimates of $20.72 billion the company was expected to earn for the quarter.

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