Microsoft reports a $2.1 billion loss in Q4
Microsoft’s earnings for the fourth quarter are in, and they show an operating loss of $2.1 billion, despite $22.2 billion in revenue (compared to $23.3 billion last year). A lot of that is due to the previously announced write-down for Nokia (and 7,800 job cuts) that caused an $7.5 billion hit. Of course, we knew that was coming, but the other news is that revenue and operating income were slightly down from last year too. Microsoft sold 8.4 million Lumia phones in Q4 (compared to 5.8 million last year), but revenue dropped 38 percent to $748 million, As the company looks forward to Windows 10, revenue for that division dropped 22 percent, a figure that it attributed to XP’s end-of-support cycle.
The net loss in Q4 amounted to $3.2 billion, which Bloomberg reports is its biggest loss ever. This occurs as Microsoft under new CEO Satya Nadella changes its approach to segments like hardware, and the cloud. It made more money from hardware, as revenue for Surface grew to $888 million and Xbox claimed a 27 percent gain. Even Bing is making more money, and says its market share in search has grown to 20.3 percent.
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Filed under: Microsoft
Source: Microsoft
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