Microsoft Bumping Along The Bottom


Microsoft said Thursday fourth-quarter profits fell 29 percent, ending a year that saw revenue fall for the first time since the company went public in 1986.

But finally there are signs of a steadier economy, said CFO Chris Liddell.

“At least we’re seeing signs of the bottom,” Liddell said on an earnings conference call with analysts. “I see us going along the bottom for some time to come.”

The company’s fortunes have waned as the global downturn suppressed PC sales and slowed business purchases of technology

But now the world’s largest supplier of PC software says the economy is stabilizing, even if sales remain well below those of a year ago. Next year will bring an improvement, but it is difficult to say when, says Liddell.

Until then, conditions for the remainder of 2009 should be similar to what the economy dealt out in the recently concluded three months.

In terms of Microsoft’s own fortunes, Windows 7 should allow it’s crucial Windows business to grow faster than the PC market by the middle of next year, Liddell said.