Microsoft has clocked a record net loss of $2.05 billion in the fourth quarter ended June 30 against a net income of $6.48 billion in the year-ago quarter.
Advertisement
As of this quarter, the company is at an annualized run rate of over $8 billion, reported by its earnings report. The company’s Device and Consumer segment was down sharply, as sales of non-volume-licensed Windows and Office continued their fall on the back of a weak PC market: Windows license revenue from OEM preinstalls was down 22 percent, and consumer sales of Office were down 42 percent. The company is scheduled to roll out Windows 10 on July 29, a much-awaited launch after a lacklustre response to Windows 8. Commercial Cloud revenue grew around 88%, driven by Azure, Office 365, and Dynamics CRM Online.
Microsoft announced the expected write-down earlier this month, adding that it would also cut as many as 7,800 jobs. The Nokia phone business was acquired by Microsoft in a $7.2 billion deal in April 2014. Reported by Yahoo Finance, Microsoft was expected to post 56 cents per share earnings, excluding the Nokia write off, on $22.06 billion revenue.
The company also saw declining sales in notable product lines, including Windows licenses, Windows Phone and Lumia handsets.
A bright spot for Microsoft was a 117% jump in revenues from its Surface computer, some $888 million for the quarter.
Bing’s market share of online advertising in the US ticked up slightly to 20.3% in the past three months, and that lifted the company’s advertising revenue. Because of this write-down fo $7.5 billion, a material impact was noted in this quarter’s results which is the primary driver of the loss for the fiscal period. And in commercial other with significant growth in our cloud revenue of $3.1 to $3.2 billion. And Phone Hardware we expect revenue to be approximately $900 million reflecting our change in approach.
“In our commercial business we continue to transform the product mix to annuity cloud solutions and now have 75,000 partners transacting in our cloud”, said Kevin Turner, chief operating officer at Microsoft.
Microsoft’s Satya Nadella says that he’s confident that Windows 10 can help the recovery of the PC ecosystem and explains that the new OS version has what it takes “to return Windows to growth”, especially because it tackles several platforms at a time and could attract both more users and developers.
In early trading Tuesday, shares were down 0.9% at $46.49.
Advertisement
Watch More: Tuesdays with Roger: What is Going on with Microsoft Phones?
