Microsoft Posts Q2 Profit Fall, However Surface A Strong Performer
Revenue 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.”