Microsoft posts first quarterly loss in company history

124678

Comments

  • Reply 61 of 156
    vinitaboyvinitaboy Posts: 156member

    Quote:

    Originally Posted by NasserAE View Post


     


    You mean the cross-licenseing, product commitments, and money they had to pay as part of the settlement for stealing Quicktime code?



    I've been waiting for someone to mention the TRUTH of the so-called "Microsoft bailout," NasserAE.  Thanks for the infusion of reality here!

  • Reply 62 of 156
    lkrupp wrote: »
    Oh bullshit! The Mac was still entrenched in the graphic arts, desktop publishing, and advertising markets. 

    Not according to the "Apple hates pros because they stopped selling Xserves" trolls.
  • Reply 63 of 156

    Quote:

    Originally Posted by Quadra 610 View Post


    MS "saved" Apple because ..........


     


     


    Start here:


     


    http://itlaw.wikia.com/wiki/Apple_v._San_Francisco_Canyon



    Great stuff.


     


    Why do you even bother. Honestly. Especially with those who are predisposed to not getting it, or not wanting to get it.

  • Reply 64 of 156
    quadra 610quadra 610 Posts: 6,757member

    Quote:

    Originally Posted by Hellacool View Post





    When you have someone "over a barrel" you do not offer joint licensing. Keep dreaming, you make way to many assumptions in your post. Considering you are not Bill Gates, kind of hard to speak on his behalf.


     


     


    http://itlaw.wikia.com/wiki/Apple_v._San_Francisco_Canyon


     


     


    Apple Computer, Inc. v. San Francisco Canyon Co. (filed Dec. 6, 1994).


     


    Factual Background


     


    San Francisco Canyon Co. was a software developer that contracted with Apple Computer in 1992 to port the QuickTime technology to Microsoft Windows. They made their first release of QuickTime for Windows in November 1992.


    In July 1993, Intel contracted San Francisco Canyon Co. to improve the performance of Microsoft's Video for Windows technology on Intel processors. By the end of 1993, Intel and Microsoft had combined their efforts to improve Video for Windows by creating a joint technology called Display Control Interface, that was included in version 1.1d of Video for Windows.


     


    Trial Court Proceedings


     


    The lawsuit, filed on December 6, 1994, alleged that the San Francisco Canyon used some of the code developed under contract to Apple, in their additions to Video for Windows. Apple expanded the lawsuit to include Intel and Microsoft on February 10, 1995, alleging that Microsoft and Intel knowingly used the software company to aid them in stealing several thousand lines of Apple's QuickTime code in their effort to improve the performance of Video for Windows.


     


    On March 3, 1995, a federal judge issued a temporary restraining order that prohibited Microsoft from distributing its current version of Video for Windows.[1] Microsoft subsequently released version 1.1e of Video for Windows, that removed all of the code contributed by San Francisco Canyon, stating in the release notes "does not include the low-level driver code that was licensed from Intel Corporation." Later testimony in the Microsoft anti-trust trial revealed that, at the time, Apple was threatening Microsoft with a multi-billion dollar lawsuit over the allegedly stolen code, and in return Bill Gates was threatening with the cancellation of Office for the Mac.[2]


     


    In August 1997, Apple and Microsoft announced a settlement deal. Apple would drop all current lawsuits, including all lingering issues from the Apple Computer, Inc. v. Microsoft Corp. lawsuit and the "QuickTime source code" lawsuit, and agree to make Internet Explorer the default browser on the Macintosh unless the user explicitly chose the bundled Netscape browser. In return, Microsoft agreed to continue developing Office, Internet Explorer, and various developer tools and software for the Mac for the next five years, and purchase $150 million of non-voting Apple stock.*


     


    The companies also agreed to mutual collaboration on Java technologies, and to cross-license all existing patents, and patents obtained during the five-year deal, with one another. [3]


     


    ------------------------------------------------


     


    *See bottom of this post:

  • Reply 65 of 156
    anonymouseanonymouse Posts: 6,860member
    ... If Microsoft doesn't become the  next IBM and just 'consult' their way into managing corporate Data centers, it will happen even faster. ...

    For the last few years, that's how I've expected Microsoft to end up, servicing their legacy enterprise users, like IBM, but lately I wonder if Windows, SQL Server, Exchange, etc. really have the legs for that. It won't happen overnight -- Windows and Office will keep them alive for at least several years (unless W8 is a complete disaster, which is possible) -- but they might just not be able to keep their customers on the hook long enough to become a services company like IBM did.
  • Reply 66 of 156
    tallest skiltallest skil Posts: 43,388member


    This is a shining light in the darkness that seems to have been the news while I was away.


     


    I don't want Microsoft bankrupt (though they probably deserve it), and I don't want them out of any of their markets (though they probably deserve it). I just want them to be punished for what they've done in the past.


     


    And who knows; hopefully they'll get down to the "90 days 'till" timeframe and wind up coming back like Apple did, but with their own stuff this time.

  • Reply 67 of 156
    philboogiephilboogie Posts: 7,675member
    For me, this stands out:

    [quote]
    Microsoft's Windows and Windows Live posted a 13 percent decrease in revenue
    [/quote]
  • Reply 68 of 156
    solipsismx wrote: »
    [VIDEO]
    I would bet against MS's next quarter being a loss.

    Good point! I assume that MS hasa top-notch CFO... Who knows how to stage good/bad financial results.
  • Reply 69 of 156
    Duplicate 2!
  • Reply 70 of 156
    Deleted AI's magical duplicate machine!
  • Reply 71 of 156
    tyler82tyler82 Posts: 1,103member
    They may go out of business in 20 years but ms is not going anywhere soon. Their OS is on 99+% of computers throughout the world.
  • Reply 72 of 156
    tallest skiltallest skil Posts: 43,388member

    Quote:

    Originally Posted by tyler82 View Post

    Their OS is on 89+% of computers throughout the world.




    Fixed.

  • Reply 73 of 156
    tylerk36tylerk36 Posts: 1,037member

    Quote:

    Originally Posted by Quadra 610 View Post


    Don't worry. Many more are to follow. 



    I love those.  Please post more.

  • Reply 74 of 156
    markbyrnmarkbyrn Posts: 661member


    Don't worry folks - you're in good hands!


     


    image

  • Reply 75 of 156
    tyler82tyler82 Posts: 1,103member
    I like to M$ bash as much as the next guy, but this is really non-news.

    They had $6.1 billion in profit this quarter, except they decided to do some shady accounting in regards to the acquisition of aQuantive in 2007. Meaning they spent the $6.3B 5 years ago and reporting that money as lost this quarter. Obviously they made a profit that quarter in 2007 even after wasting the money, so this is just tricky bookkeeping (probably to reduce their tax responsibility).

    So, no this is not the beginning of the end for M$, as much as we all would like it to be.

     

    I do not want Microsoft to go away. Humiliated and made into Apple's bitch, of course. But MS and Apple are yin and yang. Their competition is what gave us iMac, iPod, iPhone, OS X. An Apple monopoly would be boring and futile.
  • Reply 76 of 156
    solipsismxsolipsismx Posts: 19,566member

    Fixed.

    If you count smartphones and tablets and computers of the handheld variety the way MS will surely count Win8 RT (if it actually takes off) then Windows has a much, much, much lower marketshare. I think Darwin-based OSes has just or will soon overtake Windows NT-based OSes. That in itself is major issue for MS even if Win8 is the best and fasting selling version of Windows ever.
  • Reply 77 of 156
    tyler82tyler82 Posts: 1,103member

    Fixed.

    Thanks for helping me make a point ;)
  • Reply 78 of 156


    Apple has recorded in recent times the most profit of any company in the history of the world....MS posts a loss for the first quarter in the company's history. Talk about two diametrically opposed trajectories!


     


    Apple has lead the way to "Mobile" computing (iPhone & iPad) with iOS....MS can barely "shoehorn" there abortion of an OS into a Laptop...never mind trying to get it to work on a tablet or God forbid a smartphone! Good grief! Talk about a misdirected, out of touch company!


     


    MS is in the business of going out of business!


     


    With my iPad...I may never buy another Desktop/iMac or laptop again. A 7" iPad, an iP5, and a HD AppleTV (the big screen), iCloud and I'm good to go for less than 25% of the cost of what I paid for my computer system just 5 years ago.


     


    5 years ago: Original intel iMac, $1,500, original intel iBook, $1,500, 4 iPod shuffles/iPod Minis, (Gave all to my nieces), original iPhone, $600, original ATV, $300, iPad2, $600, Airport Extreme, $300, plus some iLife, iWork and OS upgrades along the way, $500. Casio Exlim Camera, $300. All equals, ~$6,000.


     


    2012: An iP5 $0.00 (will trade iP4s for $200), iPad 7" $0.00 (Sold iPad2 for $275), Apple HDTV, $1,500 (Sold 50" flat screen for $400 & ATV for $100) Sold all SW upgrades for about $100, Sold Casio Exlim Camera, $40 (only use iPhone camera, now). All equals, ~$1,300! :)

  • Reply 79 of 156
    jragostajragosta Posts: 10,473member
    macxpress wrote: »
    Maybe its not the end of Microsoft, but a loss is a loss. It doesn't matter how you try and spin it. If you overdraw your bank account by $10, it doesn't matter how you do it. Its still $-10.00 in your account. 

    Bad analogy. Business losses don't work the same way as your personal savings account or piggy bank.

    Microsoft spent the $6.3 B five years ago. That's when the money left their account. At the time, they put the acquisition onto their balance sheet as an asset - so they removed $6.3 B in cash (or however they paid for it) from their asset list and added a company worth $6.3 B. There was a reduction in their cash balance of $6.3 B but no change in their net worth.

    This quarter, they recognized that the acquisition wasn't worth even a tiny fraction of what they paid for it, so they wrote off $6.19 B of the asset value, but no cash changed hands. So their book assets declined, but their cash balance is unchanged this quarter. Essentially, the write-off was a non-cash transaction. They are simply adjusting the balance sheet to reflect the fact that the $6.3 B they spent five years ago did not get them $6.3 B in value.
  • Reply 80 of 156
    tyler82tyler82 Posts: 1,103member
    jragosta wrote: »
    Bad analogy. Business losses don't work the same way as your personal savings account or piggy bank.
    Microsoft spent the $6.3 B five years ago. That's when the money left their account. At the time, they put the acquisition onto their balance sheet as an asset - so they removed $6.3 B in cash (or however they paid for it) from their asset list and added a company worth $6.3 B. There was a reduction in their cash balance of $6.3 B but no change in their net worth.
    This quarter, they recognized that the acquisition wasn't worth even a tiny fraction of what they paid for it, so they wrote off $6.19 B of the asset value, but no cash changed hands. So their book assets declined, but their cash balance is unchanged this quarter. Essentially, the write-off was a non-cash transaction. They are simply adjusting the balance sheet to reflect the fact that the $6.3 B they spent five years ago did not get them $6.3 B in value.

    Funny, the only way I interpret your story is that they lost money.

    Time, value, stocks, interest, investments. It's all money.
Sign In or Register to comment.