Microsoft slides on Surface and PC sales hit Sliding PC sales and a $900m charge against profits stemming from weak demand for its Surface tablet hit Microsoft's revenues and earnings in the latest quarter, according to figures released on Thursday. The news, which came a week after the company announced an organisational overhaul to position it better for growth in the post-PC tech world, wiped more than 5 per cent from its share price in after-market trading. At $19.9bn, Microsoft's revenues came in some $850m short of Wall Street's expectations, with the Windows division accounting for the biggest slice of the shortfall. The business division and server and tools group also failed to meet's analysts" revenue hopes. Net income, meanwhile, reached $4.97bn, compared to a loss of nearly $500m a year before. At 59 cents, earnings per share fell well short of the 75 cents Wall Street had expected. Microsoft said that seven cents of the shortfall in earnings per share was caused by inventory adjustments related to its Surface RT tablet. The RT, launched late last year, marked Microsoft's first attempt to put its software on to machines running the ARM-based chips that are found in most smartphones and tablets, and which support longer battery life than rival chips from Intel. However, applications developed for previous versions of Windows did not run on the RT devices, discouraging potential customers.