Microsoft Posts A Loss Of $3.2 Billion For Q4, Consumer Division Struggles
Microsoft has shared details regarding its financial performance for quarter ended June 30, 2015. According to the details, the company managed to generate $2.2b in revenue during the period.
However, a company that usually generates reliable profits, posted a $3.2 billion loss, courtesy of previously announced $8.4 billion of charges and layoffs in its struggling mobile business, which Microsoft acquired from Nokia last year.
“I am proud of the results we delivered,” Microsoft Chief Executive Satya Nadella stated.
He says that apart from Microsoft’s struggles in the mobile market against Samsung and Apple, the company did better than many analysts predicted. Microsoft’s shares plummeted 3.9% to $45 after four hours of trading yesterday. During after hour trading, Microsoft shares went up by 36 cents to $47.28.
Sales for the Surface Tablet were good ($888 million), more than double to what they were a year before.
Despite a lackluster start, with the Xbox One, the company is doing well with its Xbox division as sales were up 27%. Still, it wasn’t enough as revenues for consumer division fell by 13%. Sales were also disappointing for Windows as fewer people opted to buy new PCs.
Microsoft is planning to release the new Windows 10 next week and would have hoped for its consumer division to do better before launch. The new OS will be free for many as users will be able to upgrade to the new OS.
How well Windows 10 will do remains to be seen, we’ll know more when Microsoft reveals its financials next time.