San Francisco, CA, United States (4E) – Microsoft’s revenue advanced 17 percent, beating analysts’ estimates, but profits fell 7 percent due to Nokia’s struggling mobile phone business.
In the fiscal fourth quarter ended June 30, profit was $4.6bn, compared with $4.97bn in the year-ago period. The Nokia division, which was acquired in April, lost $692mn.
Microsoft released fourth-quarter earnings after its announcement to cut 18,000 employees, which represents around 14 percent of its workforce. The bulk of the layoffs will come at Nokia as Chief Executive Satya Nadella seeks to reduce costs.
Mr. Nadella said last week that the job cuts were partly due its efforts to put thousands of Nokia workers into the Microsoft fold as well as its plans to move the company towards its cloud computing operations and away from its core software business.
In the latest period, net income was 55 cents per share. Analysts had forecast 60 cents per share on sales of $23bn. Revenue climbed to $23.38bn, topping analysts’ average forecast of $23bn.