By Matt Day, The Seattle Times
Microsoft on Tuesday reported quarterly earnings that beat Wall Street expectations, as growth in the company’s range of Web-delivered business software helped offset declines in some traditional businesses.
Stripping out accounting moves and one-time charges that reduced Microsoft’s net income, the Seattle-area company earned 69 cents a share, up from 62 cents a share a year earlier. Analysts surveyed by Thomson Reuters had expected the company to post adjusted earnings of 58 cents a share.
Adjusted revenue during the quarter was $22.6 billion, up 2 percent from a year earlier.
The quarter wraps up Microsoft’s fiscal year. For the full year, the company posted sales of $85.3 billion, down 9 percent from a year earlier.
Much of that decline is the result a fall in sales from Microsoft’s phone hardware unit, which the company has essentially shuttered less than three years after buying Nokia’s money-losing handset business. The pain from that purchase continued during the quarter, as Microsoft recorded $1.1 billion in charges that reflect the costs of a restructuring and the reduced book value of the phone business.
Microsoft shares rose in after-hours trading and were up 3.8 percent at one point to $55.09. The stock had declined in regular trading Tuesday, falling 1.6 percent to $53.09.
Including the blow from the quarter’s restructuring costs and deferred revenue related to Windows sales, Microsoft’s earnings were 39 cents a share, from a loss of 40 cents a share a year ago, a result that included a hefty phone-unit write-down.
©2016 The Seattle Times Distributed by Tribune Content Agency, LLC.
