Microsoft posted revenue of $20.4 billion for the first quarter of the 2016 fiscal year-down 12 percent from the same period last year. The company reported $0.67 per share in earnings, far more than the consensus estimates of $0.59 per share.
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For the quarter ended 30 September 2015, Microsoft reported $20.4 billion revenue with $4.6 billion profit. Microsoft said Surface revenue fell from $908 million during last year’s first quarter to $672 million this year, which the company said is likely due to its flagship tablet, the Surface Pro 3 being released in June 2014.
This new reporting structure consolidated Microsoft’s businesses into three new units. The strong dollar severely dragged revenue, which fell 12% over a year ago. “While many companies are developing commercial cloud offerings, there are really only two driving enterprise cloud platform innovation at massive scale: Amazon and Microsoft”, he said.
Meanwhile, server products and cloud services showed year-on-year growth of 13 percent, seeing Azure revenue and compute use more than doubling.
The recent decision to pare back its struggling Nokia division meant Microsoft made less money from selling mobile phones, as well. The Intelligent Cloud segment grew 8% (14%) to $5.9 billion as Azure revenue doubled, and sales of core server products also grew 9% in constant currency. Xbox Live added 28 percent more members to its ranks. With the Windows 10 launch providing a boost, Windows OEM revenue fell 6% Y/Y, an improvement from FQ4’s 22%.
Revenue in Productivity and Business Processes declined 3 percent to $6.3 billion.
Search revenue was a good news where Bing has finally become profitable and search revenue was up 29 percent, party aided by increased searches from Windows 10 devices. The firm’s shares jumped more than 7 percent in after-hours trading.
To date, 110 million “active devices” are running Windows 10, the latest version of the company’s flagship operating system, said Microsoft CEO Satya Nadella during an investor conference call today. The tech giant turned in strong earnings Thursday, beating expectations for both profit and revenue, with particularly encouraging numbers for its cloud service.
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Phone revenue declined 54 percent, which the company said is in line with its strategy. He also mentioned that developments in these three ambitious fields have helped create the best Microsoft experience that helps people achieve their dreams, reports Yahoo!
