Microsoft revenues down for quarter and year, with or without Nokia

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Microsoft wraps up its 2016 fiscal year with revenue dependencies growing on services and other sources and weaning off products. The net result is still down for the quarter and down for the year as compared to 2015.

Fourth quarter earnings totaled $20.6 billion or a 7 percent drop from 2015’s numbers. On paper, though, the company registered about $3 billion in operating income, better than the $2 billion loss from last year. Remove impairments, integration and restructuring costs and you’ll find that income on those terms was down by a bout a third — this time last year, Microsoft wrote off its acquisition of Nokia worth $7.5 billion.

Surface cash increased by 9 percent while OEM revenues from the consumer side jumped 27 percent. Phone revenue dropped a staggering 71 percent. Office sales to consumers grew by 19 percent.

Annual revenues slid 9 percent from FY2015 to $85.3 billion. On raw numbers, net income improved 38 percent to $16.8 billion — with impairment charges added back in, intake dropped by 20 percent.

Overall, however, revenue beat analyst expectations by about $400 million and MSFT shares rose three percent after the close.

Source: Microsoft
Via: CNBC

This story was updated to include market reaction.

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About The Author
Jules Wang

Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.