Microsoft 1Q17 earnings, hardware on target
Microsoft wrapped its first fiscal quarter of 2017 with a split take on earnings.
Incomes as measured by general accepted account principles have gone down year-over-year, but has improved using Microsoft’s non-GAAP figures.
In GAAP terms, net revenue went up 0.4 percent to $20.45 billion, operating income went down 10 percent to $5.23 billion and net income sunk 4.4 percent to $4.69 billion. Its non-GAAP revenue went up 3.1 percent to $22.33 billion, operating income was up by 0.5 percent to $7.1 billion and net income rose 5.8 percent to $5.99 billion.
Its Intelligent Cloud services showed the best gains of Microsoft’s measured units with revenue up 8 percent to $6.4 billion. Productivity and Business Processes also had a good year with growth of 6 percent to $6.7 billion.
More Personal Computing took a 2 percent hit to $9.3 billion with Microsoft and OEM hardware and cloud sales flat. Surface-derived revenue, while suffering from a sequential decline, did make an impressive 38 percent climb to $926 million. Gaming fell 5 percent — software and services compensated for a sharp drop in hardware sales. Search advertising revenue improved by 9 percent.
Phone revenue was down 72 percent annually. Microsoft’s mission continues to stray away from first-party mobile hardware for the time being, but its future is up in the air.
After hours trading saw MSFT shares pop up 5.6 percent after dropping 0.5 percent during regular trading.