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Microsoft Posts Q2 Profit Fall, However Surface A Strong Performer

Microsoft Posts Q2 Profit Fall, However Surface A Strong PerformerRevenue of US$26.47 billion was up from US$24.52 billion year-on-year, while net income of US$5.86 billion was down from US$6.56 billion.

As reported by Reuters, shares in Microsoft fell 3 per cent in after-hours trading.

Among Microsoft’s highlights for the quarter was the performance of the Surface tablet, which generated US$1.1 billion in revenue, up 24 per cent, which Microsoft stated was driven by the Surface Pro 3 and accessories.

However, commercial licensing revenue, which includes Microsoft’s Windows business, fell to US$10.68 billion from US$10.91 billion year-on-year.

Xbox console sales totalled 6.6 million units, with computer and gaming hardware revenue declining from US$4.47 billion to US$3.99 billion year-on-year.

Phone hardware revenue was $2.28 billion, with 10.5 million Lumia units sold during the quarter.

“Even though they beat on consumer and devices, it was a slight miss on the commercial side,” Bloomberg reported FBR Capital Markets & Co analyst Daniel Ives as stating. “That gives you a B-plus quarter where some investors were looking for an A-minus.”