Highlights:
* Says client revenue declined 8% as a result of pc market weakness and a
continued shift to lower priced netbooks
* Says economic activity and it spend slowed beyond our expectations in the
quarter
* Says entertainment and devices revenue grew 3% driven by strong holiday
demand for xbox 360 consoles
* Says reduction of headcount-related expenses
* Says no longer able to offer quantitative revenue and EPS guidance for the
balance of this fiscal year
* Says planning for economic uncertainty to continue through the remainder of
the fiscal year
* Says offers operating expense guidance of approximately $27.4 billion for the
full year ending June 30, 2009
* Says will eliminate up to 5,000 jobs in research and development, marketing,
sales, finance, legal, hr, and it over the next 18 months
* Says initiatives will reduce the company's annual operating expense run rate
by approximately $1.5 billion
* Says reduce fiscal year 2009 capital expenditures by $700 million
* Says operating expense guidance of approximately $27.4 billion for the full
year ending June 30, 2009
* Reuters Estimates Q2 earnings per share view $0.49, revenue view $17,082.44
million
* Sees lower revenue and earnings for the second half relative to the previous
year
* Says costs of implementation and employee severance will be included in Q3