Microsoft has reported a 22% decline in fiscal Q1 revenue, which stood at $16 million.
The company’s stock is up by around 14% for the year to date.
The company reported a profit of $4.47 billion and a deferred $1.36 billion in revenue for its Office software offer, and in pre-sales and upgrades for the upcoming release of Windows 8.
At the same point year-on-year, Microsoft reported $5.74 billion profit on $17.37 billion revenue.
“The PC market was challenged this quarter,” said Microsoft chief financial officer Peter Klein in an interview with The Wall Street Journal’s Market Watch.
“In addition to a tough economic environment and competitive pressures, OEMs [original equipment manufacturers] drew down their Windows 7 inventory as they began to transition to Windows 8.”
Microsoft revealed its Xbox Music streaming, download and cloud service earlier this week which, with a 30 million plus catalogue, it hopes will rival the likes of iTunes and Spotify.