Microsoft Posts FY15 Q4 Loss
Microsoft reported a $3.2 billion quarterly net loss as the company wrote down its Nokia phone business and demand fell for its Windows operating system. The company took a charge of $7.5 billion in the fourth quarter related to the restructuring of its Nokia handset business, which it bought last year.
"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," said Satya Nadella, chief executive officer at Microsoft. "And the upcoming release of Windows 10 will create new opportunities for Microsoft and our ecosystem."
"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.
Sales of Windows to computer manufacturers to install on new PCs fell 22 percent in the quarter. The company is scheduled to roll out Windows 10 on July 29.
Microsoft wants to generate revenue by building search and gaming into the Windows 10 interface, Amy Hood said in April.
Bing, the company's online search engine, will be profitable in the year ending June 2016, Hood said on Tuesday.
Sales of Windows to businesses fell 21 percent from the year-earlier quarter, when demand for the operating system had surged after Microsoft discontinued support for Windows XP.
Revenue from Microsoft's commercial cloud business, which includes offerings such as Office 365 and Azure, rose 96 percent, excluding the impact of a strong dollar.
Microsoft said it added 3 million subscribers for Office 365 in the quarter, taking the total number of subscribers for the product to 15.2 million at the end of June.