Microsoft reports 7% drop in profit after Nokia acquisition
US technology giant Microsoft reported a seven per cent drop in profit with a March to June profit of $4.6bn - down from $4.97bn in the same period last year.
Microsoft anticipates Lumia sales to stabilise Nokia sector
The deficit has been attributed to Microsoft’s Nokia division which it acquired in April. The division ran a $692m loss gave but the technology firm access to a substantial mobile manufacturing infrastructure.
This comes after Microsoft, last week announced a behemoth 18,000 job cuts – the largest in the company’s 39-year history.
Satya Nadella, CEO of Microsoft, said: “We are galvanised around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution.
“I’m proud that our aggressive move to the cloud is paying off – our commercial cloud revenue doubled again this year to a $4.4bn annual run rate.”
Amy Hood, executive vice president and chief financial officer at Microsoft, said: “Our solid execution and expense discipline allowed us to deliver a strong finish to the fiscal year.
“As we enter fiscal 2015, we are focused on aligning our resources to strategic investments that we believe will deliver the next wave of innovation, growth, and long-term shareholder value.”
The Microsoft job cuts will account for nearly 15 per cent of its 127,000 workforce.