Tópico: [EN] Microsoft Sales Rise 25%
24-10-2014, 13:39 #1
[EN] Microsoft Sales Rise 25%
Microsoft on Thursday offered tantalizing signs of progress in the transformation of its business. In the last quarter, the company had a 25 percent increase in sales.
Revenue grew to $23.20 billion from $18.53 billion, topping analysts' $22.01 billion forecast. This quarter's sales include $2.6 billion revenue from the phone business, which Microsoft didn't own a year ago.
The tech giant reported net income of $4.54 billion, or 54 cents per share, for its fiscal first quarter that ended in September — beating analysts' consensus estimate of 49 cents per share, according to FactSet. That's down from $5.24 billion, or 62 cents per share, a year ago, due to $1,1 billion in costs to restructure and integrate its recent purchase of Nokia's smartphone business. The charge resulted from Microsoft's plan, launched in July, to cut 18,000 jobs, or about 14 percent of its workforce, with most of those cuts coming from its newly acquired Nokia phone business.
The results impressed investors, especially when compared with weak results from other technology bellwethers like Oracle, IBM, SAP, VMware, and EMC. "Microsoft is bucking the trend and we would label these September results as a solid accomplishment," said Daniel Ives, an analyst at FBR Capital Markets. “I thought these were stellar numbers in a choppy I.T. spending environment.”
Microsoft shares, which have climbed 33 percent over the past year, rose another 4 percent in after-hours.
Revenue from devices and consumer products surged 47% overall. The Surface division contributed $908 million to the total, largely due to strong sales of the Surface Pro 3. Xbox shipments were also up 102% to 2.4 million units.
On the corporate side, Microsoft did not disclose its cloud-based revenue, but said commercial cloud sales rose 128 percent, while sales of services based on its Azure cloud platform rose 121 percent.
Perhaps more importantly, it said gross profit margin in the unit that includes Azure rose 194 percent, despite rising infrastructure costs, which includes the huge expense of building and operating datacenters.
Nomura analyst Rick Sherlund figures Microsoft is on track to hit $6 billion a year in cloud revenue soon, which would make it the industry's largest cloud vendor by his calculations. That represents only about 6 percent of overall expected revenue this fiscal year, but investors are highly sensitive to a business they see as key to the future.
"We're the only company with cloud revenue at our scale that is growing at triple digit rates," said Satya Nadella, on a conference call with analysts.
24-10-2014, 15:21 #2
Who needs Windows?
80% of the Fortune 500 are using Microsoft's cloud, Nadella said on a conference call with investors Thursday.
Microsoft sales soared 25% in the last three months on the back of cloud, Xbox and, yes, even the Surface tablet and Nokia smartphones.
This is a new Microsoft that doesn't need to rely on its operating system to support it. Windows sales were just OK in the last quarter: Sales to businesses were up 10% and consumer upgrades were up just a bit, but consumer PC sales were down 1%.
The real story was in the cloud, which is now the primary focus of the company, according to new CEO Satya Nadella. Sales of cloud services to businesses grew by a whopping 128% last quarter, driven primarily by the company's Office and Azure platforms. Eighty percent of the Fortune 500 are using Microsoft's cloud, Nadella said on a conference call with investors Thursday.
Office, which recently began offering a subscription model for consumers, now has 7 million Office 365 subscribers, Microsoft said. That's up 25% over the previous quarter.
But it wasn't just software driving Microsoft's sales growth. Devices were also a large factor, including more than $900 million worth of Surfaces -- Microsoft's once left-for-dead tablet line. Surface Pro 3 is selling at twice the rate that the Pro 2 was -- and the tablet was profitable for Microsoft last quarter. That's a big deal, considering Microsoft wrote down nearly $1 billion on excess Surface inventory a couple years ago.
Xbox sales doubled, though the comparison is a little weird -- the Xbox One hadn't launched yet a year ago. But Microsoft now has more than 20 million paying members on its Xbox Live gaming and media network -- another cloud success story.
The biggest boost came from Nokia sales, which Microsoft purchased in late April. Microsoft sold $2.6 billion worth of Nokia phones. Sales of its high-end Lumia smartphones were up year-over-year.
But even without Nokia, overall Microsoft sales would have grown by 11%.