Microsoft Financials for Quarter Ending June 30, 2009

July 25, 2009

I don’t have much to add to the hundreds of comments about Microsoft’s financial performance. You can look at the Wall Street Journal’s graphic that shows five red arrows pointing south. You can find this on Page B 1 of the June 24, 2009, Marketplace section. The most interesting comment I saw was on ZDNet UK which was referencing a story on Cnet by Ina Fried. (How is that for provenance?) The story said:

Search revenue was flat compared to last year, despite the launch of Bing.com during the quarter, Microsoft said. However, the company said it has seen a double-digit increase in unique users.

I have not seen any detail about the Fast ESP search system. My hunch is that this will remain a black hole for a while longer. The costs of delivering on the wild and wooly promises of the Fast ESP vision are going to creep out at some point. So, in terms of online and search, Microsoft has more cost sink holes ahead in my opinion.

Promises, prognostications, and public relations have to yield real revenues at some point. Just not now it appears. Maybe Microsoft should take a look at Autonomy’s business model.

Stephen Arnold, July 25, 2009

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