Microsoft might miss revenue guidance due to coronavirus threat

Microsoft is the latest tech company to warn its performance could be affected by the coronavirus outbreak.

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The software giant said revenue in the operating segment that makes its Windows OS and Surface devices is likely to be affected by the virus.

The software company issued revenue guidance last month for its More Personal Computing segment of between $10.75 billion and $11.15 billion for its fiscal third quarter, which ends in March. The guidance was unusually wide to reflect the complications of the outbreak, which has already killed more than 2,700 people and infected 81,000.

Microsoft isn’t the only company to report impact from the virus, formally known as SARS-CoV-2. Apple said it will likely miss quarterly revenue guidance that it gave last month and could cause an iPhone supply shortage. Samsung temporarily shut a plant that manufactures its Galaxy Z Flip phone, though it has since reopened, because an employee tested positive for the virus.

The organizers of the MWC trade show, an annual event in Barcelona at which new phones are released, canceled the gathering because of concerns surrounding the virus, which causes a respiratory disease known as COVID-19.

Microsoft shares were down 1.75% to $167.20 in after-hours trading.

 

 

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