Microsoft Gives Hope to Tech Sector

Microsoft Corp. has posted an 18 percent decline in quarterly profits, results that are not desirable on their own but actually hint at the possibilit of a larger recovery in the ailing technology sector of the economy. While business spending for Microsoft products was weak in the last quarter, Microsoft saw increased demand for personal computers and videogames.

Microsoft’s results have provided optimism to the rest of the technology sector that consumer demand may be on its way to making a full recovery, especially after the impact that the economic recession has had. Investors also took Microsoft’s results as a sign of positive change, a relatively good outcome for the company after two of its worst quarters in history, sending Microsoft’s shares up 5.4 percent to $28.03.

Microsoft has also provided signs that consumer demand for its new Windows 7 operating system has been strong, even though the sales revenue from Windows 7 will be shifted into the next quarter. However, Microsoft’s revenue in the current quarter fell 39 percent to $2.62 billion from $4.28 billion.

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