Microsoft Q4 2013 financial shows nearly $4.97 billion in net total profits on the revenue of $19.9 billion that misses expectations. Also the massive $900 million Surface RT inventory charge hurts earnings badly.
The Redmond-based behemoth has just released its Q4 2013 report which gives the vital statistics on its monetary health. With $19.9 billion in revenue, $6.07 billion in reporting income and $4.97 billion or $0.59/share in net income, Microsoft is a survivor alright. But the company takes $900 million or $0.07/share Surface RT inventory adjustments charge that turns its profit statement into loss. Over $6 billion in profits were raked in the last quarter. Many events have transpired since then. The CFO gave up his post. Xbox One was launched. DRM strategies were put in place and then some backtracking took place. Don Mattrick resigned and joined Zynga. Steve Balmer organized some new structural changes. Microsoft’s annual earnings for the fiscal year 2013 were $2.58 per share on the revenue of $77.85 billion with an operating income of $26.76 billion.
Don't Miss: Best new Toys at New York Toy Fair 2017
The Chief Financial Officerat Microsoft, Amy Hood, admitted that while the current slump in the PC market did have a visible effect on the results. Microsoft needed to look to its business enterprise and cloud settings. They were an avenue for future growth. Hood said, “While we have work ahead of us, we are making the focused investments needed to deliver on long-term growth opportunities like cloud services.”
To rely on age-old formulas set in stone was suicide. The sales of its Surface Tablet were going down. The earnings reflected an organization that still had a few concerns it needed to address. We refer to the Surface RT inventory adjustments which had a hefty $900 million as their nominal fee. It’s true that Microsoft has its personal problems which need to be solved by hook or by crook. Yet they are not exactly insurmountable. After all, the word impossible contains the word possible.