Microsoft server unit flips to quarterly loss

C|Net | at | by Mike

Stung by the costs of compensating a larger work force, Microsoft's Server and Tools business posted a hefty operating loss in the December quarter, reversing the profit posted a year earlier.

The unit lost $204 million, as compared with a $234 million profit in the same quarter a year ago, according to a quarterly report filed Friday with the Securities and Exchange Commission. Microsoft's two other main units--the Client business, which includes desktop versions of Windows, and the Information Worker, which includes Office sales, posted narrow improvements in their profits from a year ago.