Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report was down 5.5% in preopen Island trading after the company met lowered expectations for the fourth quarter but warned that the current quarter earnings would be 39 or 40 cents a share, below the consensus estimate of 45 cents.

The software giant said late Thursday it expected its main desktop business to grow in the mid-single digits in the first quarter, while its smaller enterprise segment would grow by about 20%.

For the fourth quarter, Microsoft earned 1 cent a share including charges, in line with its previous forecast.

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