Microsoft sinks 11% on earnings miss and huge Surface write-down

The Redmond, Wash., based software giant said Thursday that its fiscal fourth-quarter net income rose to $5 billion, or 59 cents per share. Analysts polled by Thomson Reuters forecast Microsoft earnings of 75 cents per share.

Sales rose 10% to $19.9 billion, also falling far short of the $20.7 billion analyst had forecast.

Shares of Microsoft fell 11% on Friday.

Results were negatively impacted by a whopping $900 million write-off of Microsoft's Surface RT inventory. Microsoft recently knocked $150 off the price of the tablet, which debuted in October and initially sold for $500. It is the first PC designed by Microsoft, but the company says its own devices will become a big part of the company's strategy going forward.

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