Slump in PC sales hits Microsoft profits

Company feeling the crunch for the first time in 23 years

Microsoft s profits down 32 per cent

Microsoft has posted its latest batch of figures and it doesn't make for the best reading.

The computing company has seen its profits fall 32 per cent year-on-year, with sales shrinking by 6 per cent in the same timeframe.

This by no means points to financial woe for the company – profits were still $2.98 billion – but it does echo the effect that the current credit crunch is having on the technology industry.

Difficult economic environment

Microsoft is blaming a slump in PC sales for the decline in revenue, with Chris Liddell, Microsoft's Chief Financial Officer telling analysts that the company was facing "the most difficult economic environment we've faced in our history."

Despite the lower figures, Liddell was happy with the way the company has handled the past financial quarter, stating: "While market conditions remained weak during the quarter, I was pleased with the organisation's ability to offset revenue pressures with the swift implementation of cost-savings initiatives.

He did however warn that Microsoft "expect[s] the weakness to continue through at least the next quarter."

Via CNN Money