Microsoft posts positive earnings for its fiscal 4th quarter, cloud services the primary driver

Microsoft posts positive earnings for its fiscal 4th quarter, cloud services the primary driver
Even with acquisition of Nokia Devices and Services, and what would have been a standalone loss on its part, Microsoft generated respectable growth across the board according to its earnings statement today.

For its fiscal 4th quarter, Microsoft announced revenues of $23.38 billion, topping out the whole year at $86.8 billion. Operating income for the quarter and year were $6.5 billion, and $27.8 billion respectively.

By itself, and for the period that Microsoft has owned it, Nokia Devices and Services accounted for roughly $2 billion in revenue with a loss of about $690 million. Those numbers did not slow much of the momentum that Microsoft has generated, primarily through cloud services.

Microsoft added over 1 million Office 365 subscribers for the quarter, and the customer base overall is more than 5.6 million. Office 365’s growth rate is over 100% at this point. Bing saw ad revenues grow by 40%, and its share of the US search market grew to 19.2%. Microsoft’s cloud strategy is paying off in its commercial segments as well.

The new Microsoft Surface Pro 3, in its short time on the market, has driven an additional $409 million in revenues. That, along with “a decision to not ship a new form factor” (read as: Surface Mini), has enabled Microsoft to effectively recover the $900 million write-down it made last year. Over 1.1 million Xbox consoles were sold. Even PC activity was up, with OEM Pro revenue gaining 11%, offsetting a 9% decline in non-Pro from Windows OEMs.

On the Windows Phone front, and in part due to the acquisition of Nokia, revenue for Windows Phone is up 95%. 5.8 million Lumia smartphones were sold, and 30.3 million non-Lumia Nokia devices were also sold.

Overall, Microsoft’s net profit was a little bit lower than expected by the institutions on Wall Street. The revenue was over expectations, but the earnings per share missed by a penny. The company’s stock is pretty much steady at the time of this writing. That is due, in large part, to Microsoft CEO Satya Nadella’s relentless communication about the need to reshape the company, and the implementation to make that happen.


source: Microsoft

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19 Comments

1. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

But the mobile phones department generated a loss of almost 700 000 000 dollars. Not really useful and if they cancelled the McLaren, what will they do?

4. sip1995

Posts: 1771; Member since: Feb 07, 2014

They didn't cancel it, they just delay it...

8. Penny

Posts: 1847; Member since: Feb 04, 2011

I agree they're hurting in the Mobile Phone industry, but they are still strong in enterprise, especially with Azure and cloud technology. They still have time to figure out the mobile phone market, but they need to start separating themselves from the pack to do so.

2. AfterShock

Posts: 4146; Member since: Nov 02, 2012

5.8 million Lumia smartphones were sold, and 30.3 million non-Lumia Nokia devices were also sold. Ouch. But up %95!!!!

5. epdm2be

Posts: 819; Member since: Apr 20, 2012

This sounds weird indeed. It also show (what users have been saying ALL THESE YEARS) that we don't like Lumia's What I worries me the most is that Microsoft "claims" to have so much profit YET they need to cut jobs? This ain't right! Is that richest man of the world not rich enough already? Gates is supposedly doing so much "donations" yet he can't maintain his own employees?

7. Penny

Posts: 1847; Member since: Feb 04, 2011

Wow, this is an egregious statement. Job cuts don't just happen when there are losses, they also happen when you absorb companies and when you want to restructure to narrow your focus. Bill Gates is one of the most philanthropic people on this planet, if not THE most. He's no longer managing Microsoft directly -- hasn't been the CEO for over a decade. You need to show some respect.

9. billgates

Posts: 555; Member since: May 29, 2014

Lol I was about to say that too.. People truly have no idea what they are talking about like the chap above you

19. epdm2be

Posts: 819; Member since: Apr 20, 2012

"Job cuts don't just happen when there are losses, they also happen when you absorb companies" Why bother to buy a company if all you want to do is sack (almost) everyone? Unless you have a hidden agenda or vendetta to solve (like a fiscal trick to hide the fat bonusses that the managment and shareholders received for instance or to reward the mole you put into a company to destroy it from the inside out through manipulation and greed). "...hasn't been the CEO for over a decade." Which doesn't mean he's out of the company. He STILL is a major shareholder, plays a significant role in the decisions made by the company (as member o/t board of directors) and STILL has a function as Technology Advisor. You and the poster below should also get HIS facts striaght. http://www.extremetech.com/computing/175969-microsofts-new-ceo-is-satya-nadella-and-bill-gates-is-officially-coming-back http://www.nytimes.com/2014/02/06/technology/a-different-gates-is-returning-to-microsoft.html?_r=0 http://www.telegraph.co.uk/technology/microsoft/10617669/Bill-Gates-is-back-to-take-a-bite-out-of-Apple-Amazon-and-Google.html "You need to show some respect." Why should I show respect to the man who got his fortune by deceid and manipulation? Why should I show respect to someone who is direct or indirect responsible for dumping thousands of people into poverty and despair? A man who acts like a jolly good fellow because he does "philanthropy" but has no regards for the welfare of his own employees. Sorry, I can't respect nasty rich bitches! I value honesty, fair-trade and equality.

6. Shatter

Posts: 2036; Member since: May 29, 2013

Most of those are low end so the revenue is horrible.

18. Finalflash

Posts: 4063; Member since: Jul 23, 2013

They're feature phones, the revenues are pretty good for MS on those because they were the only money makers at Nokia after the whole Elop crisis.

3. derivativex

Posts: 176; Member since: Jul 15, 2014

it says in the link itself that it was operating income not net income (net profit)

10. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Only 5.8 million Lumias sold? That's PATHETIC. But WP is supposed to be a viable alternative. All those sales prove is that people just don't want WP. But that's none of my business.

11. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

5.8 million lumias sold... Brighter future.... Ouch LOL.

14. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Its another 5.8 Million more on top of the many tens of Millions sold before. Android sells more so go worship your Android OS and stop badmouthing WP. Let us WP fans have a mature conversation, thx.

15. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

This isn't even from the full quarter. Sales were calculated for the timeframe between 25th April and 30th June.

16. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

Derp. Thanx "mature" person. P.S. Stop thumbing your own comment. :)

17. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Everyone has choice. No need to keep coming and bashing the OS. You are obviously insecure about your choice, no need to spoil every WP article with your obsessiveness trolling. Contribute something meaningful show us that you are not a derp. I am betting your paycheque depends on it. Next Windows Phone article it will be interesting to see if you are there bashing I haven't checked but I'm sure if I do you are probably on other tech sites spreading your hate, trolls are like that. P.S out of curiosity I checked to see if you can upvote yourself and you can't so what's your point?. People upvote I don't care about that just care about the truth. Stop trolling, its annoying and counter productive.

12. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

Release desktop Windows 9 please. :)

13. gerryf19

Posts: 6; Member since: Dec 20, 2013

Wait until all those people who bought Office 365 find out they bought a subscription to use office for a year instead of office. I cannot tell you how many people I have talked with using it who think they "own" office.

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