19/07/2013

Microsoft reports Q4 miss: $0.59 EPS on revenues of $19.89 billion

With PC sales tumbling and Microsoft continuing to struggle to find its place in the mobile market, all eyes turn to the company’s fiscal fourth-quarter earnings report. Analysts expected the company to report earnings of $0.75 per share on $20.74 billion in revenue after the closing bell on Thursday. The results are in and Microsoft fell short of Wall Street’s expectations, posting earnings of $0.59 per share on $19.89 billion in sales. In its release, Microsoft noted that the earnings included a $900 million charge, or a $0.07 per share impact, related to the “Surface RT inventory adjustments.” In the same quarter last year, the company posted EPS of $0.73 on revenue totaling $18.06 billion.

Microsoft CFO Amy Hood explained that the “fourth quarter results were impacted by the decline in the PC market,” however the company continues to see “strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter.” The executive noted that consumer demand for services like Office 365, Outlook, Skype and Xbox Live has also increased, and the company is “making the focused investments needed to deliver on long-term growth opportunities like cloud services.”

Microsoft chief executive Steve Ballmer said that new “compelling” devices such as Windows 8.1 tablets and PCs, along with its recent restructuring, puts the company in a position for “long-term success.”

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