Software giant, Microsoft has recorded a lower than expected results in the fourth quarter as it had to take a $900 million charge Surface RT tablet.

The company missed its revenue and profit expectations during the quarter following a lower than expected performance by its rival Google. Microsoft also faced effects of a weak personal-computer market around the world that affected its earnings during the quarter. The sales of traditional desktop computers have slowed worldwide and the company is struggling to expand to newer computing platforms.

The company posted a earnings of 66 cents a share excluding a Surface write-down, which is much lower than 75 cents expected by analysts. The company's revenues were recorded at $19.9 billion compared to a Wall Street expectation of $20.7 billion. Chief Executive Steve Ballmer has introduced major re-organization in the company in an attempt to strengthen its position in the tablet and smartphone market.

Software giant, Microsoft has cut the price of its Surface RT tablets by $150 following a major restructuring at the company, in a move to revive sales of the tablet computer in the highly competitive market. Windows 8. Experts say that the motive of the price reduction is not known but it would be to clear inventory for the second generation version or simply to boost sales of the light version of the tablet computer in the market.

Shares of the company fell 6.3 per cent to $33.22 in the after hours trading.