Microsoft posts $3.1 billion in profit, a year after big loss

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(Last Updated On: July 20, 2016)

SAN FRANCISCO: Microsoft said Tuesday it posted a profit of $3.1 billion in the just-ended quarter, swinging into the black a year after hefty charges from writing off mobile phone assets.

“This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations,” said chief executive Satya Nadella.
The profit in the tech giant’s fourth fiscal quarter was nearly identical to the loss from a year earlier, when it took charges of more than $7 billion to reflect the lower value of the Nokia mobile phone division it had acquired.

Revenue dipped to $20.6 billion from $22.2 billion in the same period a year ago.

Overall, the results were better than most forecasts and sparked an after-hours gain of more than 3% for the company, which is seeking to regain its leadership in the tech sector.

Under Nadella, Microsoft is trying to reduce its dependence on software sales amid declining use of personal computers, and boost its role in services and cloud computing, with some contributions from its XBox gaming platform and Surface tablets.

Nadella said in a statement that “the Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead.”
Microsoft closed out its fiscal year with a 38% rise in profit to $16.8 billion.


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