{"id":9149,"date":"2015-04-24T19:34:20","date_gmt":"2015-04-24T18:34:20","guid":{"rendered":"http:\/\/www.itwriting.com\/blog\/?p=9149"},"modified":"2015-04-24T19:34:20","modified_gmt":"2015-04-24T18:34:20","slug":"microsoft-financials-2","status":"publish","type":"post","link":"https:\/\/www.itwriting.com\/blog\/9149-microsoft-financials-2.html","title":{"rendered":"Microsoft financials Jan-March 2015"},"content":{"rendered":"

Microsoft has released figures for its third quarter, ending March 31st 2015. Here is my simple summary of the figures showing the segment breakdown:<\/p>\n

Quarter ending  March 31st 2015 vs quarter ending March 31st 2014, $millions<\/em><\/p>\n\n\n\n\n\n\n\n\n\n
Segment<\/td>\nRevenue<\/td>\nChange<\/td>\nGross margin<\/td>\nChange<\/td>\n<\/tr>\n
Devices and Consumer Licensing<\/td>\n3476<\/td>\n-1121<\/font><\/span><\/span><\/td>\n3210<\/td>\n-807<\/font><\/span><\/span><\/td>\n<\/tr>\n
Computing and Gaming Hardware<\/td>\n1800<\/td>\n-72<\/font><\/td>\n414<\/td>\n+156<\/font><\/td>\n<\/tr>\n
Phone Hardware<\/td>\n1397<\/td>\nN\/A<\/td>\n-4<\/font><\/td>\nN\/A<\/td>\n<\/tr>\n
Devices and Consumer Other<\/td>\n2280<\/td>\n+456<\/font><\/td>\n566<\/font><\/span><\/td>\n+175<\/font><\/span><\/td>\n<\/tr>\n
Commercial Licensing<\/td>\n10036<\/td>\n-299<\/font><\/span><\/td>\n9975<\/td>\n-157<\/font><\/span><\/td>\n<\/tr>\n
Commercial Other<\/td>\n2760<\/td>\n+858<\/font><\/span><\/span><\/td>\n1144<\/font><\/span><\/span><\/td>\n+669<\/font><\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The figures form a familiar pattern: Windows and shrink-wrap (non-subscription) Office is down, reflecting weak PC sales and the advent of free Windows at the low end, but subscription sales are up and cloud is booming. See the foot of this post for an explanation of Microsoft\u2019s confusing segment breakdown.<\/p>\n

Microsoft says that Surface Pro 3 is doing well (revenue of $713 million) and this is reflected in the Devices figures. Commercial cloud (Office 365, Azure and Dynamics) is up 106% year on year.<\/p>\n

Cloud aside, it is impressive that server products reported a 12% year on year increase in revenue. This is the kind of business that you would expect to be hit by cloud migration, though I am not sure how Microsoft accounts for things like SQL Server licenses deployed on Azure.<\/p>\n

Xbox One is disappointing, bearing in mind the success of the Xbox 360. Microsoft managed to lose out to Sony\u2019s PlayStation 4 with its botched launch and market share will be hard to claw back.<\/p>\n

Microsoft reports 8.6 million Lumias sold, the majority being low-end devices. Not too bad for a platform many dismiss, but still treading water and miles behind iOS and Android.<\/p>\n

The company remains a huge money-making machine though, and Office 365 is doing well. A few years ago it looked as if cloud and mobile could destroy Microsoft, but so far that is not the case at all, though its business is changing.<\/p>\n

Microsoft\u2019s segments summarised<\/h5>\n

Devices and Consumer Licensing<\/strong>: non-volume and non-subscription licensing of Windows, Office, Windows Phone, and \u201c related patent licensing; and certain other patent licensing revenue\u201d \u2013 all those Android royalties?<\/p>\n

Computing and Gaming Hardware<\/strong>: the Xbox One and 360, Xbox Live subscriptions, Surface, and Microsoft PC accessories.<\/p>\n

Devices and Consumer Other<\/strong>: Resale, including Windows Store, Xbox Live transactions (other than subscriptions), Windows Phone Marketplace; search advertising; display advertising; Office 365 Home Premium subscriptions; Microsoft Studios (games), retail stores.<\/p>\n

Commercial Licensing<\/strong>: server products, including Windows Server, Microsoft SQL Server, Visual Studio, System Center, and Windows Embedded; volume licensing of Windows, Office, Exchange, SharePoint, and Lync; Microsoft Dynamics business solutions, excluding Dynamics CRM Online; Skype.<\/p>\n

Commercial Other<\/strong>: Enterprise Services, including support and consulting; Office 365 (excluding Office 365 Home Premium), other Microsoft Office online offerings, and Dynamics CRM Online; Windows Azure.<\/p>\n","protected":false},"excerpt":{"rendered":"

Microsoft has released figures for its third quarter, ending March 31st 2015. Here is my simple summary of the figures showing the segment breakdown: Quarter ending  March 31st 2015 vs quarter ending March 31st 2014, $millions Segment Revenue Change Gross margin Change Devices and Consumer Licensing 3476 -1121 3210 -807 Computing and Gaming Hardware 1800 … Continue reading Microsoft financials Jan-March 2015<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,55],"tags":[267,586],"class_list":["post-9149","post","type-post","status-publish","format-standard","hentry","category-cloud-computing","category-microsoft","tag-cloud-computing","tag-microsoft"],"_links":{"self":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts\/9149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/comments?post=9149"}],"version-history":[{"count":0,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts\/9149\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/media?parent=9149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/categories?post=9149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/tags?post=9149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}