According to a report by Microsoft, published on Thursday, net income for the fourth quarter of last year was $5 billion, which is 15 percent less than in the same period a year earlier.
In the last quarter, Microsoft generated revenues of $23.8 billion, a 10 percent decrease year-over-year, due to the rise in the dollar exchange rate and the decline in personal computer (PC) sales.
According to a report by Microsoft, published on Thursday, net income for the fourth quarter of last year was $5 billion, which is 15 percent less than in the same period a year earlier.
The decline in revenue is due, among other factors, to the strengthening of the dollar. Microsoft generates more than half of its total revenue from outside the U.S. market, so it, like other American multinational companies, suffers from the high dollar exchange rate, which has increased by about 9 percent over the past year against a basket of the world’s major currencies.
The revenues of the world’s largest software manufacturer are also under pressure due to the decline in PC sales, which has reduced demand for the Windows operating system. According to data from the analytical firm IDC, in the last quarter of last year, global PC sales fell by 10.6 percent compared to the same period the previous year. Therefore, Microsoft’s revenues in the segment that includes the Windows system fell by 5 percent year-over-year in the last quarter, to $12.6 billion.
