A couple of software companies are paying dearly for recent forays into matters of hardware.
Google’s Motorola business continues to bleed money at an alarming rate, losing $342 million in the second quarter of 2013. As can be expected, this has hurt its parent company, which today reported it missed expectations at revenues of $14.11 billion and EPS of $9.54.
The same quarter a year ago, Motorola’s operating loss was $199 million. In other words, the Q2 2013 results are more than $100 million lower than those in Q2 2012.
Microsoft just announced earnings for its fiscal Q4 2013, and while the company posted strong results it also revealed some details on how the Surface RT project is costing the business money. Microsoft's results showed a $900 million loss due to Surface RT "inventory adjustments," a charge that comes just a few days after the company officially cut Surface RT prices significantly. This $900 million loss comes out of the company's total Windows revenue, though its worth noting that Windows revenue still increased year-over-year