The Redmond, Wash.-based company’s revenue for the quarter ending March 31 was $13.65 billion. Analysts were expecting a number over $14 billion.
Microsoft pointed to weaknesses in several areas, including PC and server sales, as well as financial struggles in its business division.
On the positive side, sales of netbooks are growing. But even though Microsoft says it’s gaining ground on chief competitor Linux for market share of this new technology, the company still makes a lot less on each sale of the less expensive computers.
Despite the news, Microsoft stock rose 14 cents, or almost 1 percent on Thursday.