US computer software titan Microsoft Corporation last night said that its fiscal fourth-quarter profits fell 24%, partly as income flagged in its Internet and home and entertainment operations.
Microsoft said net profits for the quarter ended June 30 declined 24% to $2.83 billion from $3.70 billion a year ago.
The company reported slightly better-than-forecast earnings per share of 31 cents, against 34 cents in the prior year. Wall Street had expected earnings of 30 cents per share for the quarter.
Revenues spiked to a record $11.80 billion, marking a 16% gain over the same quarter in 2005, Microsoft said. Wall Street had forecast revenues of $11.63 billion.
The company also announced its board of directors had approved a share buyback scheme totalling up to $40 billion. The first $20 billion stage of the repurchase programme is due for completion on August 17, 2006, while a second authorisation for the remaining $20 billion extends to June 30, 2011.
'Our upcoming launches of Windows Vista, the 2007 Microsoft Office system, Exchange Server 2007, and other key products position us to continue to deliver strong revenue growth in the fiscal year 2007,' Microsoft's chief financial officer Chris Liddell said in a statement.
Profits were dented as Microsoft reported an operating income loss of $190m for its MSN Internet business, compared with a profit of $101m a year ago. The company's home and entertainment business segment also reported a wider $414m loss compared with a $201m loss for the fourth quarter of 2005.
