News

Microsoft Revenue up in Q1 2014

Cloud revenue, SQL Server, Exchange and SharePoint help offset Windows declines.

Although Windows 8 hasn't been the immediate hit Microsoft envisioned, the company as a whole is still profitable.

Microsoft's earnings for its first quarter of fiscal-year 2014 were mostly up compared with last year, as reported by the company today.

Overall revenue for the quarter was $18.5 billion, up 16 percent year over year. The total gross margin was $13.4 billion, compared with $11.8 billion last year. Net income was $5.2 billion, up from $4.4 billion last year. Diluted earnings per share was $0.62, up from $0.53 last year and beating expectations by $0.08.

The Q1 report reflected Microsoft's new reporting structure that was explained in September. Instead of reporting the results from its five traditional divisions, Microsoft now has five reporting segments grouped under "Devices and Consumer" (D&C) and "Commercial" categories, plus it added a "Corporate and Other" category (see chart).

Microsoft Q1 2014 revenue earnings across segments.

The D&C category includes licensing for Windows and Windows Phone, plus hardware and subscriptions to Office 365, among other items. The Commercial category includes licensing for some online services plus licensing for Microsoft's servers and other technologies (examples include Windows Server, SQL Server, Visual Studio, System Center, Windows Embedded, Microsoft Office, Exchange, SharePoint, Lync, Skype and Microsoft Dynamics excluding Dynamics CRM Online).

The D&C licensing segment that includes Windows and Windows Phone licensing, notably returned less revenue in Q1 ($4.3 billion) than it did last year ($4.7 billion). However, Microsoft explained that the Q1 results reflected "the deferral of $113 million of revenue primarily related to Windows 8.1 pre-sales."

Overall, Microsoft claimed that D&C revenue grew 4 percent year-over-year to $7.5 billion this quarter, even with a 7 percent decrease in Windows OEM revenue. The company claimed that its Commercial revenue grew 10 percent to $11.2 billion.

D&C highlights for the quarter included Surface revenue of $400 million and search ad growth of 47 percent, according to Microsoft's earnings report. Commercial highlights included double-digit revenue growth for SQL Server, Lync, Exchange and SharePoint, plus 103 percent cloud revenue growth, according to Microsoft.

About the Author

Kurt Mackie is senior news producer for the 1105 Enterprise Computing Group.

comments powered by Disqus

Featured

  • What's New in Visual Studio 2019 v16.5 Preview 2

    The second preview of Visual Studio 2019 v16.5 has arrived with improvements across the flagship IDE, including the core experience and different development areas such as C++, Python, web, mobile and so on.

  • C# Shows Strong in Tech Skills Reports

    Microsoft's C# programming language continues to show strong in tech industry skills reports, with the most recent examples coming from a skills testing company and a training company.

  • Color Shards

    Sharing Data and Splitting Components in Blazor

    ASP.NET Core Version 3.1 has at least two major changes that you'll want to take advantage of. Well, Peter thinks you will. Depending on your background, your response to one of them may be a resounding “meh.”

  • Architecture Small Graphic

    Microsoft Ships Preview SDK, Guidance for New Dual-Screen Mobile Era

    Microsoft announced a new SDK and developer guidance for dealing with the new dual-screen mobile era, ushered in by the advent of ultra-portable devices such as the Surface Duo.

  • How to Create a Machine Learning Decision Tree Classifier Using C#

    After earlier explaining how to compute disorder and split data in his exploration of machine learning decision tree classifiers, resident data scientist Dr. James McCaffrey of Microsoft Research now shows how to use the splitting and disorder code to create a working decision tree classifier.

.NET Insight

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.

Upcoming Events