Tomahawk, WI 8/07/2013 (Basicsmedia) – Lately, it has sort of become trendy for major technology-related firms to post financial results which are far from what was initially expected of them. Whereas one can confidently state that MSFT posted amazing revenues, which are the envy of many, these weren’t as was expected. The figure of $19.9 billion failed to meet the estimates by industry experts and analysts. It had been expected to post more than $20.73 billion in revenues, and though it isn’t too far from what it published, there is still some concern as to whether it represents good stock to buy in 2013.

What Has Affected MSFT’s Performance?

If there is one factor which has been singly responsible for the poor performance which MSFT continues to publish, it has to be the fact that sale of PCs has been on a decline. This might seem to be contradictory bearing in mind that most homes and offices are fitted with PCs, which also use software developed by MSFT. However, a close look at what is going on in the market would show you that people are switching from PCs to tablets in this day and age. Don’t forget that MSFT opted to write off its business known as Surface RT, valued at $900 million and over.

When reading such information, one would be tempted to think that MSFT is struggling and that there is nothing good in the company. However, one has to remember that MSFT was one of the few companies which successfully managed to reduce its expenses to $30.83 billion, compared to the $34.43 billion it reported in 2012. Its operating profits increased from $21.76 billion to settle at $26.76 billion, thus demonstrating that the company is not doing as poorly as I might be envisaged. These impressive results are quite good considering that sale of PCs has dropped.

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This image, courtesy of www.seekingalpha.com, shows the increasing trend of

MSFT dividend over many years.

It is worth pointing out that MSFT has reported wonderful news with regard to its cash flow. This is a company which doesn’t suffer from negative cash flow problems, and the last figures mentioned in this regard, were an impressive $14 billion. The total assets owned by MSFT have increased as well, to settle at $142 billion from $121 billion reported a year ago. MSFT has five divisions, and each one of these reported revenue growth, both for the latest quarter in 2013, as well as for the last full year. Once again, this is impressive, although it never met estimates.

MSFT has done quite well for a company which was founded in 1975, and has more than 99,000 full time employees. Operating from its headquarters in Redmond, Washington the company has grown to become a global brand with a foothold in every continent and nation in the world. It is quite innovative and doesn’t rely on its past products to continue driving sales forward. It is quite innovative in the market, despite the fierce competition it has to put up with in the form of Apple Inc, Google Inc, and Oracle Corporation. However, I agree that it is a buy in 2013.

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