REDMOND, Wash., July 31 (UPI) -- U.S. software giant Microsoft (
NASDAQ: MSFT,
Stock Forum) said in a regulatory filing it had not given up on the Surface digital tablet despite its
disappointing financial success.
PCWorld reported Wednesday that Microsoft in a filing with the Securities and Exchange Commission, took one-time charge of approximately $900 million in its fiscal year, which ended June 30, due to Surface inventory that had not sold.
The year also included $898 million in advertising costs, which was attributed to Windows 8 and the Surface.
Revenue from the Surface came to $853 million in the fiscal year, Microsoft said. But the company said it was not yet planning to stop investing in the device.
In the first quarter of the year, Microsoft shipped 900,000 Surface tablets, which gives the company a 1.8 percent market share, far behind Apple Inc. (
NASDAQ:AAPL,
Stock Forum), which shipped 19.5 million iPads in the quarter, giving it a market share close to 40 percent.
Microsoft was also far behind Samsung (
OTO:SSNLF,
Stock Forum), which held an 18 percent share of the market, Asus, which held 5.5 percent and Amazon.com, which held 3.7 percent.
In 2012, Microsoft posted its
first loss in 26 years as it looked to the Surface tablet and Windows 8 to turn consumer sentiment around. Earlier this month, CEO Steve Ballmer announced the company would reshuffle to
promote faster innovation.
Microsoft shares sit at $31.94 currently, down from a 52-week high of $36.42 mid-month.
UPI, with file by Chris Parry