Microsoft Corp. posted a 32% drop in profit and the first decline (-6 percent) in quarterly revenue in its 23-year history as a public company. Microsoft executives blamed the drop on the pullback in spending on PCs by both consumers and businesses.

Revenue for the quarter ending March 31 was $13.65 billion, below Analysts' expectations of more than $14 billion. Four of Microsoft's five business divisions recorded lower sales, including a 16% decline in its Windows business to $3.4 billion.

According to Gartner, PC shipments fell by 6.5% in the first three months of this year.