Microsoft in failed bid to trump Google

THE vast chasm between two of the world’s biggest technology names was revealed last night as both Microsoft and Google posted results, writes peter campbell.

Google saw its revenues jump by a third to £7.6bn in three months, boosted by the acquisition of Motorola.

But Microsoft reported its first-ever loss after it slumped into the red between April and June.

The company, the world’s largest software maker, made a net loss of £313m, compared to a profit of £3.8bn the year before.

It came after the group wrote down some £3.9bn from its 2007 takeover of the online advertisement firm aquantive, which it bought in a bid to beat Google.

But yesterday Microsoft admitted the acquisition hadn’t brought any benefits.

Sales dropped 4pc to £11.4bn, dampened by slowing PC sales featuring its flagship Windows operating system.

The results are the first time it had made a loss over any reporting period since becoming a public company in 1986.

But in its full-year results, also released yesterday, the company made a net profit of £14.2bn on revenues of £46.9bn.

In contrast Google’s pre-tax profits rose by 12pc to £2.2bn, beating expectations.

The figures are the first released by the group since it bought Motorola in May for £7.9bn. The division now makes up a tenth of the company’s revenue.

Chief executive Larry Page said the company’s success was partly built on ‘launching a bunch of exciting new products’ including the group’s tablet computer, the Nexus 7.

The release puts it directly in competition with Apple, which has dominated the tablet computer market since it produced the ipad.

Over the last six months, Google saw its pre-tax profits increase to £4.5bn from £3.9bn last year.