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Microsoft results better than expected

by on24 October 2014

Richer than Smaug

Microsoft has posted much better results than the cocaine nose jobs of Wall Street expected.

Redmond said that it had higher-than-expected quarterly revenue, helped by stronger sales of its phones, Surface tablets and cloud-computing products for companies.

Word on Wall Street had been a little concerned that Microsoft might suffer from a bad case of lower-margin for its cloud services. This view was re-enforced by negative earnings results Oracle, IBM, SAP, VMware, and EMC.

Microsoft did not disclose its cloud-based revenue for the fiscal first quarter, but said commercial cloud sales rose 128 percent, while sales of services based on its Azure cloud platform rose 121 percent.

Microsoft is predicted to make $6 billion a year in cloud revenue soon, which would make it the industry's largest cloud. However would still be only about 6 percent of overall expected revenue this fiscal year.

Microsoft's fiscal first-quarter profit actually fell 13 percent, largely due to an expected $1.1 billion charge related to mass layoffs announced in July.

It collected a profit of $4.5 billion compared with $5.2 billion in the year-ago quarter.Revenue rose 25 percent to $23.2 billion, thanks to the phone business it bought from Nokia in April. Lumia smartphones sales hit 9.3 million in the first full quarter since the close of the Nokia deal. Sales of the Surface tablet more than doubled to $908 million from $400 million last year.

 

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