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Microsoft reports major Q4 loss

Massive Nokia write-off weighs down earnings

Microsoft reports major Q4 loss
Microsoft CEO Satya Nadella

Microsoft has reported a fourth quarter loss of $3.2 billion, or 40 cents a share, following the $7.5 billion write-down for the Nokia purchase in the last year.

Excluding charges, Microsoft reported earnings of 62 cents a share. Revenue for the fourth quarter was $22.18 billion.

Beyond the Nokia debacle, results for the three months ended June 30 beat analysts’ projections but sales growth came from Microsoft’s consumer division and not its traditional robust enterprise business. These other businesses earned a profit of $6.4 billion on $22.2 billion in revenue.

Sales of the Surface tablet, for instance, more than doubled from a year earlier to $888 million, and sales of Xbox game consoles and associated videogame revenue rose 27%.

The figures come just a week ahead of release of Windows 10 on 29 July. In a departure from past launches, existing customers can upgrade to the latest Windows free of charge. The company is looking to recoup any losses by selling those customers add-ons like PC videogames, Office and Web-search ads, a business model perfected by Google.

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