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Microsoft Warns on Unit Revenue as Coronavirus Outbreak Disrupts Supply Chains

By Yasin Ebrahim - Microsoft (NASDAQ:MSFT) after the bell Wednesday warned that revenue growth in its More Personal Computing segment, which includes Windows, would fall short of previous guidance as the coronavirus outbreak in China weighed on supply chain activity.

Shares fell 0.7% in postmarket trading.

“Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call,” Microsoft said in a statement. “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. All other components of our Q3 guidance remain unchanged.”

Microsoft previously guided revenue for the segment within the range of $10.75 billion to $11.15 billion.

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