Microsoft writes off Surface tablet inventory

News General Global 19 JUL 2013
Microsoft writes off Surface tablet inventory

Microsoft reported USD 19.90 billion of revenue in its fiscal fourth quarter to the end of June, up 3 percent on the year-earlier period, with an operating income down 24 percent to USD 6.07 billion. Net income, after a USD 900 million charge related to Surface RT tablet inventory adjustments, decreased 29 percent. After the USD 0.07 per share charge, Microsoft’s diluted EPS fell to USD 0.59 in the quarter. The results reflect recognition of USD 782 million of previously deferred revenue related to the company’s Office upgrade offer.

Microsoft said its fourth quarter results were impacted by the decline in the PC market, but strong demand persists for its enterprise and cloud offerings. Consumer demand for Office 365, Outlook.com, Skype and Xbox Live is increasing, according to CFO Amy Hood.

By division, Microsoft Business revenue increased by 14 percent for the fourth quarter, Servers & Tools revenues grew 9 percent, Windows sales rose 6 percent, Online Services turnover expanded by 9 percent, and Entertainment and Devices sales increased 8 percent.

Microsoft has revised its operating expense guidance downward to USD 31.3 billion-USD 31.9 billion for the year to June 2014.

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Unified communications, Messaging, Hosting - cloud - data centres, IT - applications, Consumer devices, Wireline, Wireless, Wholesale, Consumer, Enterprise, Videoconferencing

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