Microsoft said revenues for its third quarter to end March fell to USD 20.53 billion from 21.72 billion, with the operating profit going down to USD 5.28 billion from 6.59 billion, its net profit sliding to USD 3.75 billion from 4.98 billion and earnings per share falling to USD 0.47 from 0.61.
CEO Satya Nadella said the company is seeing momentum across its cloud services and with Windows 10. Results were hurt however by higher tax expenses due to the changing mix of revenue across geographies, as well as between cloud services and software licensing. CFO Amy Hood said results are being hurt by weakness in one-time purchases of software, Bloomberg reported.
Revenues at Productivity and Business Processes grew 1 percent (6% in constant currency) to USD 6.5 billion, while at Intelligent Cloud, they lifted 3 percent (8% in constant currency), with the number of Enterprise Mobility customers more than doubling year-on-year to over 27,000 and the installed base up nearly four-fold.
Revenue in More Personal Computing went 1 percent higher (3% in constant currency), with Windows OEM revenue down 2 percent, Surface revenue up 61 percent and phone revenue down 46 percent, all in constant currency. Xbox Live monthly active users grew 26 percent to 46 million and search advertising revenue lifted 18 percent in constant currency.
