Microsoft said Wednesday evening that it would miss its third-quarter forecast earlier this year for its personal computing segment, which includes the money it makes by licensing Windows and selling Surface devices. The culprit, as is the case with many other tech companies, is the supply chain downturn due to the effects of the coronavirus epidemic. The company said it does not expect other divisions to be affected.
“Although we see strong Windows demand in line with our expectations, the supply chain returns to normal operation at a slower-than-expected rate during our second quarter earnings call,” Microsoft said in a press release. . The company did not provide a specific revenue range for the segment; instead, he said he “doesn’t expect to follow our guidelines for the Personal Plus segment because Windows OEM and Surface are more negatively affected than expected.”
During its earnings call last month, Microsoft released quarterly revenue forecasts for the personal computing segment between $ 10.75 billion and $ 11.15 billion. The guidelines “included a wider range than usual to reflect the uncertainty related to the public health situation in China,” the company said. In the second quarter, Microsoft achieved revenue of $ 36.9 billion and profit of $ 11.6 billion. Surface revenues for the quarter increased 6% year-over-year to $ 1.9 billion.
Microsoft said on Wednesday that it is working with global health authorities to keep employees safe overseas and has donated to the coronavirus rescue efforts.