​Microsoft warns it might miss revenue guidance because of coronavirus

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.

Andrew Morse Former executive editor
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Andrew Morse
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Microsoft is the latest tech giant to warn its performance could be affected by the coronavirus outbreak. 

James Martin/CNET

Microsoft  on Wednesday became the latest tech giant to warn the coronavirus outbreak would affect its performance, saying revenue in the business segment that includes its Windows operating system and Surface devices would likely miss earlier forecasts.

The software giant 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.

On Wednesday, Microsoft said the situation wasn't stabilizing as quickly as it had hoped, prompting the revenue concern.

"As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated," the company said in a release. "All other components of our Q3 guidance remain unchanged."

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.

Watch this: Microsoft wants to make voting machines safer from hackers. (The Daily Charge, 2/18/2020)