Updated from 9:35 a.m. EDT
was down 1% in late morning after gaining early in the session. The company said late Thursday that it beat analysts' earnings expectations Wednesday but warned its results would be low for the current period and the rest of its fiscal year.
Excluding a charge for bad telecom investments, Microsoft said it earned 43 cents per share in its first quarter, on $6.1 billion in total revenue. During the same period a year ago, Microsoft posted 46 cents per share and $5.8 billion in revenue. Analysts expected Microsoft's 39 cents a share on revenue of $6.1 billion. The estimates had been lowered after a warning.
Microsoft warned that its second-quarter numbers would be 49 to 50 cents per share, lower than the 51 cents analysts expect, on $7.1 billion to $7.3 billion in revenue.