Microsoft Beats Quarterly Sales Estimates, EarningsTake Hit From Nokia Deal

Paul Lilly

Profit slide a direct result of Nokia buyout

Starting with the good news, Microsoft beat Wall Street estimates by reporting a 17 percent bump in revenue , which totaled $23.38 billion for the company's fiscal fourth quarter ended June 30, 2014. Unfortunately for Microsoft, that wasn't enough to weather its Nokia Devices and Services acquisition, which contributed to a 7 percent drop in earnings at $0.55 per share.

Despite the drop in earnings, Microsoft chief Satya Nadella is optimistic about the future, especially after rolling out a new game plan that has the company aggressively focused on the cloud.

"We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution," said Satya Nadella , chief executive officer of Microsoft. "I’m proud that our aggressive move to the cloud is paying off – our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate."

Microsoft's Windows OEM revenue grew 3 percent, driving by 11 percent growth in Windows OEM Pro revenue. The company also added 1 million subscribers to its Office 365 Home and Personal cloud service, bringing to the total to 5.6 million. Finally, Bing search advertising revenue grew 40 percent as Microsoft increased is U.S. search share to 19.2 percent.

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