Microsoft reports results, plans to cut 5,000 jobs

Thu Jan 22, 2009 9:20am EST  

(Reuters) - Microsoft Corp posted on Thursday second-quarter earnings of $0.47 per share on revenue of $16.63 billion, and announced it will eliminate up to 5,000 jobs over the next 18 months. 

Highlights: 

• Says client revenue declined 8% as a result of pc market weakness and a continued shift to lower priced netbooks 
  
• Says economic activity and it spend slowed beyond our expectations in the quarter
  
• Says entertainment and devices revenue grew 3% driven by strong holiday demand for xbox 360 consoles
• Says reduction of headcount-related expenses
• Says no longer able to offer quantitative revenue and EPS guidance for the balance of this fiscal year
• Says planning for economic uncertainty to continue through the remainder of the fiscal year
• Says offers operating expense guidance of approximately $27.4 billion for the full year ending June 30, 2009
• Says will eliminate up to 5,000 jobs in research and development, marketing, sales, finance, legal, hr, and it over the next 18 months
• Says initiatives will reduce the company's annual operating expense run rate by approximately $1.5 billion
• Says reduce fiscal year 2009 capital expenditures by $700 million
• Says operating expense guidance of approximately $27.4 billion for the full year ending June 30, 2009
• Reuters Estimates Q2 earnings per share view $0.49, revenue view $17,082.44 million
• Sees lower revenue and earnings for the second half relative to the previous year
• Says costs of implementation and employee severance will be included in Q3