Microsoft has announced a $3.2 billion net loss for the three months ended June 30, 2015, or 40 cents a share, compared with net income of $4.61 billion, or 55 cents a share, during the same period last year. Earnings were reduced by a total of $8.4 billion including the writedown of its Nokia purchase and restructuring charges related to job cuts and other integration efforts. The company announced a $7.5 billion charge to write down the value of its Nokia mobile phone business.
Its revenue fell 5% to $22.18 billion as compared to $23.38 billion during the same period in 2014. It was due to weak demand for its Windows operating system. Microsoft had posted a net profit of $4.6 billion for the same period last year.
“We finished the fiscal year with solid progress against our strategic priorities, through strong execution and financial discipline, which is reflected in our results for the quarter and the year,” said Amy Hood, executive vice president and chief financial officer at Microsoft.
Satya Nadella, chief executive officer at Microsoft said, “Our approach to investing in areas where we have differentiation and opportunity is paying off with Surface, Xbox, Bing, Office 365, Azure and Dynamics CRM Online all growing by at least double-digits.” The upcoming release of Windows 10 will create new opportunities for Microsoft and its ecosystem.
For the full year, Microsoft had a profit of $12.19 billion, or $1.48 a share, down from $22.07 billion, or $2.63 a share, the previous year.Category Business