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Microsoft suffers a net loss of US$3.2 billion, after posting US$8.4 billion of write-downs

By Wong Chung Wee - on 22 Jul 2015, 11:29am

Microsoft suffers a net loss of US$3.2 billion, after posting US$8.4 billion of write-downs

(Image source: Microsoft)

Microsoft has released its financial results for the fourth quarter of its 2015 fiscal year. The company suffered a net loss of US$3.2 billion, after posting US$8.4 billion of write-downs. The large part of its losses was due to the hefty US$7.5 billion Nokia write-down. The purchase of Nokia’s handset business hasn’t allowed Microsoft to compete on an equal footing with Apple and major Android smartphone manufacturers like Samsung and Xiaomi.

There are bright sparks amid its gloomy fourth quarter financial data. According to Satya Nadella, Microsoft CEO, the company’s investments in areas where they have differentiation are paying off. In his own words, revenues from Surface, Xbox, Bing, Office 365, Azure and Dynamics CRM Online have increased by at least double-digits. Revenue from Surface grew by 117% to US$888 million and this was driven by Surface Pro 3 and the Surface 3. Its cloud-based services of Office 365, Azure and Dynamics CRM Online, were the main contributors to its commercial cloud revenue stream, to a tune of an "annualized revenue run rate of over U$ 8 billion." In terms of search engine revenue, Bing's revenue grew 21%; just last month, Microsoft enhanced the search service with new video search capabilities. Xbox revenue grew 27% due to console sales, Xbox Live transactions and first party games.

Also, he is also looking forward to the launch of Windows 10, which will create new areas of business opportunities for Microsoft and its ecosystem. For more details on its Q4 financial data, please here over here.

(Source: Microsoft, BBC)

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