Microsoft has reported record revenue of $60.4bn in its fiscal year ending 30 June.
But the software giant disappointed analysts with the performance of its online services business.
Microsoft recorded a net profit of $4.3bn for the April to June quarter, 41 per cent higher than a year earlier.
However, the company's online services business continued to underperform recording a $488m loss in operating income for the same period.
The division clocked up an operating income loss of $1.2bn for the 12-month period, compared to $617m for the previous year.
"This is the area where we are seeing direct impact from the economic slowdown," said Microsoft chief financial officer Chris Liddell.
Microsoft has spent much of 2008 trying to bolster its online services with a series of unsuccessful efforts to acquire Yahoo, most recently with a joint offer with investor Carl Icahn.
The quarter saw strong revenue growth for Windows Server and SQL Server, and positive results in licensing for Office 2007 and Windows Vista, passing the 180 million mark in the 18 months since launch.
Long-term plan stressed over $43m loss 28 Jun 2008
Better than expected results set scene for protracted battle, says analyst 24 Apr 2008
Chipmaker continues to lose market share to Intel 18 Apr 2008
Software giant pleased with progress of Vista after posting 30 per cent sales jump 25 Jan 2008
Financial results from global distribution heavyweights hint at tough year ahead 25 Apr 2008
Strong companies may survive in a challenging economic climate, but others are left vulnerable 24 Jul 2008
Report claiming solar panels take over 100 years to recoup their value is just plain wrong, say manufacturers 05 Sep 2008
New hybrid hatchback designed to make dual-drive vehicles more affordable 05 Sep 2008
Republican attempts to highlight differences over energy policy as both candidates pledge to deliver US energy independence 05 Sep 2008
More news
Once your company has gathered up all the low-hanging fruit, what comes next? Sarah Fister Gale finds that the answer lies in everything from multi-million dollar energy efficiency programmes to printers powered by exercise bikes 03 Sep 2008
Slow journey times mean airships are highly unlikely to replace passenger jets, but, as Danny Bradbury discovers, a flotilla of new companies are convinced that low-fuel costs mean the old-fashioned aircraft could have huge appeal to freight operators 02 Sep 2008
Recent claims from the oil giant's chief executive suggesting tar sand extraction is required to slow the shift to coal may have caught the eye, but as BusinessGreen.com discovers they do not make much sense 28 Aug 2008 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
