Microsoft has posted its fourth-quarter earnings for its 2015 fiscal year, and while the company did report huge losses, it beat analysts' expectations and claimed it experienced decent growth in key businesses.
Starting off with the good news: Microsoft had a profit of 62 cents per share on $22.18 billion in revenue. It was forecasted to deliver quarterly earnings of 56 cents a share on $22.03 billion in revenue, according to Thomson Reuters.
As for the "bad" news, Microsoft posted an operating loss of $2.1 billion due to the $7.6 billion write-down related to its Nokia acquisition and restructuring charges. The net loss in the fourth quarter therefore amounted to a whopping $3.2 billion, and Bloomberg has dubbed it the company's largest-ever net loss.
Apart from the financials, here's the most important bits announced today:
Windows OEM revenue decreased 22 per cent (due to the continual decline of the PC market, among other things), but Surface sales are still going strong, with revenue growing 117 per cent to $888 million over the 90-day period. Surface Pro 3 and the launch of the Surface 3 drove Surface sales.
Total Xbox revenue spiked 27 per cent - thanks to sales related to consoles, Xbox Live transactions, and first-party games. Microsoft also saw growth in search advertising revenue and Office 365. Search advertising revenue went up 21 per cent, while Office 365 added 3 million subscribers.
Microsoft said it sold 8.4 million Lumia phones in the fourth quarter as well, which ended 30 June. That's up from 5.8 million moved in the year-ago quarter, even though Lumia revenue dropped 38 per cent to $748 million.
After posting earnings, shares of Microsoft fell 1.14 per cent to $46.75 in after-hours trading. Tune into Microsoft's conference call at 5:30 pm EST for more details on its earning results.