Microsoft expects Windows unit to miss revenue forecast

February 27, 2020 09:53
Microsoft said Windows demand remains strong, but the supply chain is returning to normal operations at a slower pace than expected amid the coronavirus outbreak. Photo: Bloomberg

Microsoft Inc. said it does not expect to meet its quarterly revenue forecast for its Windows and personal computing business as a result of the coronavirus outbreak, sending its shares down more than 1 percent in after-market trading, Reuters reports.

The company said the remaining elements of its fiscal third-quarter outlook were unchanged.

"Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated," the company said in a statement on Wednesday. 

Broad swaths of the Chinese economy have shut down or slowed because of the virus.

Microsoft is the second company in the trillion dollar club to withdraw outlook. Earlier this month, Apple said that it may not be able to meet its March-quarter sales forecast.

The software maker had previously expected the More Personal Computing unit, which houses Windows, to post third-quarter revenue between US$10.75 billion and US$11.15 billion.

Its Windows and Surface computers had been more negatively impacted than expected, Microsoft said.

The coronavirus outbreak has infected about 80,000 people and killed more than 2,700, the vast majority in China.

– Contact us at [email protected]