The US software giant, which bought Nokia for £4.5 billion in 2014, saw sales of handsets plummet from 10.5 million in the final quarter of 2014, it revealed in its FY16 Q2 results. Revenues here fell 2% to $12.7bn (at constant currencies), which the company said was ahead of the broader PC market, reflecting a higher proportion of premium devices, a strong 29% underlying growth in revenues from Surface devices and a 30% increase in Xbox Live active users.
Microsoft generated $25.7 billion in revenue during the second quarter of the company's 2016 fiscal year ending December 31, 2015, a 10 percent year-over-year decline.
Microsoft CEO Satya Nadella argued that the numbers of businesses that are piloting Windows 10 leads it to expect that it will be installed on over 200 million active devices in the coming year.
Revenue from the "intelligent cloud" business, which includes products such as its Azure cloud infrastructure and services business along with other noncloud products such as traditional servers, rose 5 per cent to $6.3 billion.
"Our commercial business executed well as our sales teams and partners helped customers realise the value of Microsoft's cloud technologies".
Microsoft also returned $6.5 billion to shareholders in the form of share repurchases and dividends.
After accounting for almost $2 billion in deferred revenue and a few hundred million more in restructuring and integration charges among other adjustments, Microsoft reported non-GAAP earnings per share of $0.78 and revenues of $25.69 billion. It now breaks down earnings into three distinct business units focused on productivity services, cloud, and Windows/devices. During the quarter Microsoft said it returned $6.5 billion to investors via share repurchases and dividends.
The release of two flagship Lumia 950 handsets appears to have done little to reverse the fortunes of Windows Phone, Digital Spy reports.
Microsoft has reported a five percent growth in its "Intelligent Cloud" division, which includes sales of its Azure public cloud services.
Dynamics revenue grew 11 percent with Dynamics CRM Online seat adds more than doubling. However, the good performance of cloud was overshadowed by the continued failure of Windows Phones to get any traction in the market, with only 4.5m devices sold. "They are a software-first company in a world that is increasingly about software".
New species of tarantula found in United States named after singer Johnny CashHamilton said that for over 10 years, he along with his colleagues has gathered and assessed tarantulas from a range of habitats. Currently, there are more than 2,300 specimens of tarantulas stored in the Auburn University Museum of Natural History (AUMNH).
Source: Microsoft Q2 FY16 Results Reveal Surface Increase, Dramatic Windows Phone Drop
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