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Microsoft Profits Sink…Windows 8 To SOS?

Microsoft’s quarterly revenue falls almost 10% to $16.01 billion for its first fiscal quarter in 2012, ending Sept. 30.

Net profit for the software giant slumped 22% to $4.47 billion

Operating income also slumped 26% to $5.31 bn and diluted earnings per share slipped 22% to $0.53.

The Windows & Live Division slipped 33% from the same time in 2011 posting revenue of $3.24 bn.

This comes as PC sales have slumped globally, as the tablet market eats into desktop demand. However, a lot of consumers and enterprises appear to be holding off for W8 launch on PC, tablets and notebooks, analysts say.

These financial results reflect the deferral of $1.36 bn of revenue and $0.13 of diluted earnings per share, due to the Windows Upgrade Offer and pre-sales of Windows 8 to OEMs.

Read: Intel Paints Gloomy Pic For Windows 8

Microsoft boss Steve Ballmer is hoping Windows 8 to be launched next week will save Microsoft’s bacon.

“The launch of Windows 8 is the beginning of a new era at Microsoft,” said Steve Ballmer, CEO.

“Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”

However, it wasn’t all bad news for the software giant – Microsoft’s Business division revenue increased 1% for the first quarter, as its server offerings – including Lync, SharePoint, and Exchange -enjoyed double-digit revenue growth.

“While enterprise revenue continued to grow and we managed our expenses, the slowdown in PC demand ahead of the Windows 8 launch resulted in a decline in operating income,” said Peter Klein, CFO.

Multi-year licensing revenue grew double-digits across Windows, Server & Tools.

Microsoft’s Online division reported revenue of $697 m, a 9% increase and online ad revenue grew 15% driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $1.95 bn, a 1% drop y-o-y. Xbox continues to be the top-selling console in the U.S., where it now has almsot 50% market share.

Microsoft newly acquired Skype continued rapid growth with 280 million users.

Microsoft reaffirms fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.