For the fiscal year ended June 30, 2009, Microsoft reported revenue of $58.44 billion, a 3% decline from the prior year. Operating income, net income and diluted earnings per share for the year were $20.36 billion, $14.57 billion and $1.62, which represented declines of 9%, 18% and 13% respectively.

OEM revenue decreased $1.1 billion or 31%, while OEM license units decreased 10%

"Our business continued to be negatively impacted by weakness in the global PC and server markets," said Chris Liddell, chief financial officer at Microsoft. "In light of that environment, it was an excellent achievement to deliver over $750 million of operational savings compared to the prior year quarter."

I wonder how Microsoft's shareholders feel?

I haven't read the MS press release you've linked to, but does it mentioin that its shares were down 7% in after-hours trading, or that the results cap off Microsoft's worst year in 23 years as a listed company?

Windows 7 really does appear to be make or break time for them.

As the press release was MS's 4th quater results it wouldn't mention things that happen after it is released otherwise that would be some press release

NPD: Apple Has 91 Percent of Market for $1,000+ PCs

Joe Wilcox on Apple’s growing domination of the high end of the computer market. This is what has Microsoft acting so defensive: Windows still has overwhelming unit sale market share, but it is now almost entirely at the low end of the market.

Think of it this way: You can now predict with a high degree of accuracy whether someone bought a Mac or Windows PC knowing only the price they paid.

Indeed it would! Although I'm sure someone at the company noticed it was their worst year in 23 years as a listed company.

I wonder if those MS shareholders - with their 1% ROI - will let Uncle Fester survive similarly bad numbers in the half-yearly results, especially as Windows 7 is meant to save the farm.

They probably did but I have yet to see a press release from a company which read "OMFG were DOOOOOMED i tells yah, dont buy us no one else is, why dont you get that free stuff from the penguin boyz"

As all ways it would depend when you bought the shares, how long you intend to keep them and how much divedends you get whilst you keep them (as long as the company pays a dividend of course), when/if you decide to sell them and as well as the performance of rest of the market.

It seems you need it spelt out for you - a press release isn't news. Why not link to an actual story, which might give some context as well as the figures.

Sorry, but falling sales, profits and share prices - especially when your competitors are offering the opposite - don't bode well for any company's shareholders or their board of directors.

But if you'd be happy buying MS shares, I have some money in Nigeria that needs shifting.

Since when have press releases stopped being news?

...I would expect a company that is dependant on the buisness community for a large percentage of its income to be suffering a reduction in earnings during a recession.

A majority of your customers cut spending, it is fairly logical that your sales will fall.