Microsoft Corp said its quarterly profit fell to $3.97 billion on Tuesday as sales in Europe and OCEANIA fell to a record low, a sign of the strain on its sales and cash-flow as it battles a weak recovery from a ransomware attack.

The Windows operating system also suffered a major blow on Tuesday when the company said its second-quarter earnings fell by 30% due to a decline in revenue from Oceanext products and an increase in the cost of its Windows Server business.

The company’s net income for the quarter ended March 30 fell to 53 cents a share from 58 cents a year earlier, but it is still the biggest quarterly loss for the company in two decades.

Revenue was down $3 billion compared with the same quarter a year ago.

Microsoft said it would take a $100 million charge to compensate for the lower revenue.

Microsoft’s revenue for the third quarter was down 12% compared with a year-earlier period.

Revenues from OCEANExts Windows Server, Office and Dynamics products fell by nearly 30% to $7.4 billion, as did revenue from its business division, Microsoft Corp’s Office division and its Dynamics platform, a company spokesman said.

Microsoft has been struggling to turn around the sales decline and cash flow slump that has crippled the company.

Its stock is down more than 11% since it hit a record high on Jan. 8.

The company has been under pressure to cut costs and lay off workers in an effort to restore its fortunes.

The financial results are also a blow to Microsoft’s main investor, Morgan Stanley Group Inc, which owns about 10% of the stock.

The stock dropped more than 20% on Monday.