Microsoft Revises Revenue Guidelines Amidst Coronavirus Outbreak

Publish On: 27 Feb, 2020 12:18 PM | Updated   |   Madhurima  

SAN FRANCISCO: Microsoft has revamped its set guidelines in terms of revenue for the quarter of January-March due to the life-threatening coronavirus outbreak in China along with other parts of the world. The company said that there has been a gradual slowing down of the supply chain, this will definitely take a toll on the business of Windows and Surface.

The company released a statement where it mentioned, "The supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call."

They further said, "As a result, for the third quarter of the fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated. All other components of our Q3 guidance remain unchanged."

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For Microsoft's "More Personal Computing" segment, quarterly revenue guidance was issued by the company. It was between $10.75 billion to $11.15 billion. It happened on 29 January 2020, while introducing a wider range than usual keeping in mind the coronavirus outbreak and the uncertainty related to it.

Taking about the coronavirus epidemic the company revealed, "As the conditions evolve, Microsoft will act to ensure the health and safety of our employees, customers, and partners during this difficult period," The company will keep on partnering with the authorities of local and global health to aid assistance.

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For the second quarter of the month of October-December, the multi-million dollar company proclaimed an $11.6 billion profit and revenue of $36.9 billion. Surface revenue was up by $1.9 billion, which is 6% (year over year).