$492m: Microsoft reports first public loss in history

by Adeniyi Abdul

Microsoft Corporation (NASDAQ:MSFT) has its first loss in its 26 years as a public firm. The company had warned 2 weeks earlier that it was taking a $6.2bn (£3.9bn) charge because its 2007 purchase of an online ad service. The service, aQuantive has apparently not yielded the returns envisioned by management.

This led to a $492m loss in the April to June quarter, or 6 cents a share, as opposed to profits of $5.9bn, or 69 cents, a year ago. Revenue also rose 4pc to $18.06bn. The online ad business however accounts for only 4% of the company’s revenue.

Microsoft Corporation (NASDAQ:MSFT) from the tech sector, is associated with Dow Jones Industrial Average index as well as the S&P 500 with 90,000 employees. The net profit margin was 31.96%. MSFT’s return on equity was recorded as 38.23% and increased a 27.87% return on investment while its return on assets stayed at 21.44%.

The company also had a current ratio of 2.94 with a debt to equity ratio of 0.17 and long-term debt to equity ratio of 0.17. MSFT stock institutional ownership remained at 67.09% while insider ownership included 5.76%.

The stock in the last session held volume of 46.66 million shares while it’s average volume was 41.81 million shares. The stock after opening at $30.51 hit a high price of $30.80 and then closed at $30.67 by scoring +0.71%.

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