Microsoft CFO Amy Hood: "We know we have to do better"

Microsoft's latest quarterly financial results didn't exactly thrill analysts. The company reported that it brought in $19.90 billion in revenue, along with $4.97 billion in net income, for the second 2013 calendar quarter (Microsoft's fourth fiscal 2013 quarter). Both numbers missed expectations of most financial analysts. On top of that, Microsoft took a one time $900 million charge thanks to its decision to cut the price of its Surface RT tablets by $150.

The company held its quarterly financial conference call with some of those analysts today, with Microsoft chief financial officer Amy Hood taking the lead on the call (CEO Steve Ballmer did not attend). In her opening remarks, Hood admitted that the overall PC industry is in decline, which is something that the company has tried not to talk much about in the past.

Microsoft recently launched a new restructuring of the company's divisions, in part because it sees the need to "evolve beyond the PC", as Hood said today. She said that this kind of change will take time and added, "We know we have to do better". However, she seems to think that the changes will work out in the end saying, "We are confident we are moving in the right direction.”

As far as the large one time charge for the Surface RT price cut, Hood said, "We believe this price decrease will accelerate Surface RT adoption and position us for better success."

Source: Microsoft | Image via Microsoft

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10 Comments

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Phouchg said,
Oh, good! Wait, no, everybody knows that...

Jugging by comments I got posting on something to do with Windows 8.1, obviously not...
LOL

They are worried as the sales of Windows 8 have been rubbish, and if they continue with the DRM in the XBOX One. That will be another kick in the pants for Microsoft.

Just got the Surface RT at the reduced price and I'm actually LOVING it. I had no interest in RT before, trying it now for the past few days and being able to take it in on my vacation... I'm stoked =)

I think this price reduction is helping because I saw a few other people at the Best Buy looking to get it too Let's hope they lower the Pro price a bit too.

j2006 said,
Just got the Surface RT at the reduced price and I'm actually LOVING it. I had no interest in RT before, trying it now for the past few days and being able to take it in on my vacation... I'm stoked =)

I think this price reduction is helping because I saw a few other people at the Best Buy looking to get it too Let's hope they lower the Pro price a bit too.

The RT works great as a travel companion and nicely compliments my laptop. Wish the RT had stylus support, though.

At the moment there seems to be about a $300 cost (or profit margin) to adding in the stylus tech, so not likely to see it on these RT or lower end win8 devices anytime soon. I guess that would also partly take away from one of the surfaces benefits.

You can use a passive stylus and it works nicely, but yeah, an active stylus would be nice >.<

@ Osiris - It's not that much. The screens are more expensive, but more like $120.

Tried Surface RT, open IE, navigate to Neowin (desktop mode) and then scroll... And I can see the page redraw, it's not fluid at all. Did the same thing on the iPad and no problem at all, fluid motion, no redraw. I did that test in a store, making sure no background apps were running on both tablet, I even rebooted the RT.

So, I took the decision to wait for the new RT with a better CPU/GPU. I just hope the price will stay the same. RT would be perfect for what I need, a nice tablet with Office. If only Zinio would be better, they did a so-so job with the RT version.

TruckWEB said,
Tried Surface RT, open IE, navigate to Neowin (desktop mode) and then scroll... And I can see the page redraw, it's not fluid at all. Did the same thing on the iPad and no problem at all, fluid motion, no redraw. I did that test in a store, making sure no background apps were running on both tablet, I even rebooted the RT.

So, I took the decision to wait for the new RT with a better CPU/GPU. I just hope the price will stay the same. RT would be perfect for what I need, a nice tablet with Office. If only Zinio would be better, they did a so-so job with the RT version.

What are you doing on the desktop IE?