Wednesday marked the 4th Quarter earnings release by Microsoft, and it reported increased profits and sales numbers. But, even with the large number of sales for its Office and Enterprise components, one of the biggest problems still revolves around the Surface RT.
In its 4th Quarter Earnings report, Microsoft reported close to $20 billion in revenue and $6 billion in operating income, but took at $900 million dollar charge for its Surface RT adjustments. This large charge shows the lack of sales for Surface RT around the globe.
26.76 Billion in Operating Income for MSFT
In the year end numbers for Microsoft, the company reported a $26.76 billion number in operating revenue. This is a huge number for the company, and even with the large charge for the Surface RT unit problems, it shows that the company, despite public opinion, is continuing to make record sales for its company.
Business and Server & Tools Divisions Grow
In the quarterly numbers, Microsoft reported that the Business division had a 14% growth in the past quarter. In addition, Microsoft saw a 9% growth in the 4th Quarter for its Server and Tools vision. Both of these divisions are strong groups within Microsoft, and show that businesses are continuing to order Microsoft services and products in the Enterprise.
Revenue Up for Entertainment/Devices and Windows as Well
The company also reported that the Entertainment and Devices group grew at a 8% rate, and saw the Windows revenue grow 6 percent. Both of these divisions didn’t see the growth of the other divisions, but show that Windows 8 and the Xbox 360 and Windows Phone products are growing albeit at a smaller rate.
Microsoft did tell analysts that the revised revenues for the full fiscal year ending June 30, 2014 was aimed downward from $31.3 billion to $31.9 billion. This unfortunately caused the stock to drop in after hours trading as traders saw this as a reason to dump the stock. The Surface RT news and the $900 million charge for the excess inventory shows that Microsoft still does not quite get the mobile market, but continues to make efforts to battle Apple and others in the space.
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