Microsoft sees profit dip on PC stagnation, forex factors

Software titan hits analysts’ projections, disappoints bulls

Tags: Microsoft CorporationUSA
  • E-Mail
Microsoft sees profit dip on PC stagnation, forex factors
By  Stephen McBride Published  January 27, 2015

Microsoft suffered a dip in quarterly profit as PC shipments continued to fall and a strong US dollar put pressure on overseas business, Reuters reported.

The company reported $5.86bn in profit for Q4, compared with $6.56bn, in Q4 2013. Revenue rose 8% to $26.47bn, following last year's acquisition of Nokia's devices unit.

Although the earnings slide was no more than had been predicted by analysts, it followed months of positive investor feedback as the Redmond-based software company's shares reached 14-year highs.

"While currency is a headwind for Microsoft and other large international companies, we would characterise the headline numbers as good enough, although some bulls may have been hoping for a bigger beat," said FBR Capital Markets analyst Daniel Ives.

Microsoft's chief financial officer, Amy Hood, said the greatest impact was in sales of software licences to business clients, where the majority of the company's revenues come from.

According to Reuters, Microsoft gets almost 75% of its revenue from overseas and the majority of this is from commercial licensing.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code