Microsoft Announces a $3.19bn Loss

Microsoft has announced a net loss of $3.19bn in the past quarter on Tuesday, blaming a hefty write down on the smartphone business it acquired from Nokia. The US tech giant earlier this month announced a $7.5bn charge to write down the value of the smartphone operations acquired in 2014 from the Finnish group. Microsoft also took restructuring charges of nearly $1bn as part of the move, which included some 7 800 job cuts worldwide. Revenues dipped 5% from a year ago to $22.2bn in the fourth fiscal quarter which ended June 30.

Sales from Windows, the core of the Microsoft business, fell 22% as the company ramped up for the release of the new Windows 10 operating system, aimed at both personal computers and mobile devices. Windows Phone revenues tumbled 68% in a sign of the company’s woes in the mobile sector, and the acquisition of Nokia’s handset unit which meant lower royalties. A bright spot for Microsoft was a 117% jump in revenues from its Surface computer, some $888m for the quarter. The company also saw growth in sales of its Xbox game consoles, and boosted revenues from its Bing search engine and its Office 365 software suite.


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