Microsoft\'s revenue fell 6% last quarter - the first year-on-year decline in its 23-year history as a public company.
The slumping PC and server markets pushed net income down 32% to $2.98 billion, with revenue of $13.65 billion. Profit from the company\'s Windows division slumped 19% to $2.5 billion, on sales of $3.4 billion.
The company was also hit by severance charges of $290 million, as a result of a plan to cut up to 5,000 jobs, and $420 million in impairment charges.
"While market conditions remained weak during the quarter, I was pleased with the organization\'s ability to offset revenue pressures with the swift implementation of cost-savings initiatives," said CFO Chris Liddell.
But he warned he expected market conditions to remain weak for at least the next quarter.