Non-GAAP revenues were down 10 per cent on the year at $25.7bn, with the Personal Computing division’s takings of $12.7bn down 5 per cent, and Productivity and Business Processes down 2 per cent at $6.7bn.
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Office 365 revenue grew 70 percent and the platform’s consumer subscribers increased to a total of 20.6 million.
The decline in phone revenue meant that Microsoft’s overall devices revenue experienced quite a drop, falling by 26 percent compared to one year ago, even though Surface device sales pulled in an impressive $1.35 billion. Surface revenue climbed 29% in constant currency on the back of strong launches of the Surface Pro 4 and Surface Book. However, the good performance of cloud was overshadowed by the continued failure of Windows Phones to get any traction in the market, with only 4.5m devices sold.
The second quarter figures reveal how a significant proportion of the company’s revenues now come from cloud, with commercial cloud revenues exceeding $9.4bn. That division is the home of services like Windows Azure and products for servers and cloud computing.
Global shipments of new PCs declined 8.3 percent during the fourth quarter compared with a year earlier, the research firm Gartner recently reported.
Analysts on average had expected a profit of 71 cents USA per share and revenue of US$25.26 billion, according to Thomson Reuters I/B/E/S.
Windows 10 is now installed on more than 200 million devices as well, the Microsoft CEO says.
The company’s net income fell to $5 billion, or 62 cents per share, in its second-quarter ended December 31 from $5.86 billion, or 71 cents per share, a year earlier.
The company’s shares rose more than three percent to $54.08 in after-market trades.
The revenue Microsoft generated from their cloud business, including the Azure platform used by many businesses for storage and collaboration, was up by 5% to 6.3 billion dollars (£4.3bn), while Azure revenue alone was up by 140%. And finally Xbox Live active users grew to 48 million, that’s 30 per cent up year-on-year.
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‘Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft’s cloud technologies’.
