Microsoft's Q4 earnings numbers include the largest quarterly loss the company ever had with $2.1 billion ($3.2 with taxes).
Microsoft released its Q4 earnings numbers and to no surprise they are bad. Microsoft already prepared investors for the bad news with the announcement earlier this month of billions in write-offs for the Nokia acquisition.
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Microsoft Corporation reported revenues for the quarter ended June 30, 2015 with $22.2 billion. Gross margin, operating loss, and loss per share for the quarter were $14.7 billion, $(2.1) billion, and $(0.40) per share, respectively.
With taxes the loss comes to $3.2 billion, which is the largest ever Microsoft reported.
These results include the impact of a $7.5 billion non-cash impairment charge related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business, in addition to a restructuring charge of $780 million.
There was also a charge of $160 million related to the previously announced integration and restructuring plan. Combined, these items totaled $8.4 billion or a $1.02 per share negative impact.
Discounting the Nokia loss, Microsoft actually earned 62 cents a share, despite Windows OEM revenue decreasing by 22%. Other offerings did though very well. The Surface revenue grew 117%, Xbox revenue grew 27%, Search advertising increased 21% and Microsoft added 3 million subscribers to Office 365.
“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.”
The Microsoft Stock fell 4% in after hour trading, which is less than the Apple Stock got hit with yesterday.