Microsoft just posted shocking year end results refelecting weakness in almost every area except for operating expenses where costs are also down by 10% reflecting strong fiscal management:

-Revenue down 17% y/y

-Revenue of $13.1 billion vs. street estimate $14.4 billion

-Net income down 29% y/y

-Operating expenses down 10% y/y

-Weakness in the business PC and server hardware markets

-Client revenue down 22% y/y

-OEM revenue down 24% y/y

-Server and tool revenue down 6% y/y

-Online services down 13% y/y

-Microsoft business division down 13% y/y

-License only sales down 35% y/y

-Entertainment division down 25% y/y

-Will hire 3,000 employees in “more strategic areas”