Microsoft reported quarterly earnings and revenue that missed analysts' expectations on Thursday.
After the earnings announcement, the software company's shares fell in trading after the closing bell. (Click here to get the latest quotes for Microsoft.)
Net income according to generally accepted accounting principles fell to $4.47 billion, or 53 cents per share, from $5.74 billion or 68 cents per share, in the year-ago quarter.
Revenue fell 8 percent to $16.01 billion from $17.37 billion a year ago.
Analysts had expected the company to report earnings of 56 cents a share on $16.42 billion in revenue, according to a consensus estimate from Thomson Reuters.
Microsoft said the revenue drop was partly caused by a dip in demand for PCs running Windows, as consumers held off new purchases in the tight economy or opted to buy tablet devices instead. The decline was exaggerated by Microsoft's deferral of some revenue which it will regain next quarter.
Microsoft is hoping to revive PC sales next week with the launch its new Windows 8 system on Friday.
Microsoft's earnings release follows a surprise early earnings announcement from Google , which was supposed to report after the closing bell. The search engine giant missed on both earnings and revenue.
An earlier version of this story said Microsoft beat expectations. In fact, based on the numbers analysts look at with Microsoft, the GAAP numbers, the results missed expectations.