Microsoft posts quarterly loss, writes down Nokia phone business
Microsoft reported a $3.2 billion US ($4.14 billion Canadian) quarterly net loss, hurt by charges related to its Nokia phone business and job cuts, and weak demand for its Windows operating system.
The company took a charge of $7.5 billion US in the fourth quarter related to the restructuring of its Nokia handset business, which it acquired last year.
Microsoft's shares fell 3.5 per cent to $45.65 US in extended trading on Tuesday.
Shifting focus as Windows sales slump
Under chief executive Satya Nadella, the company has shifted its focus to software and cloud services as demand for its once-popular Windows operating system slows.
Sales of Windows to computer manufacturers to install on new PCs fell 22 per cent in the quarter. The company is scheduled to roll out Windows 10 on July 29, a much-awaited launch after a lacklustre response to Windows 8.
Revenue from its commercial cloud business, which includes offerings such as Office 365 and Azure, rose 96 per cent, excluding the impact of a strong dollar.
Microsoft said this month that it would cut 7,800 jobs, or nearly 7 per cent of its workforce, mainly in the phone hardware business.
The company reported a net loss of 40 cents per share for the quarter ended June 30. Microsoft reported net income of $4.61 billion US, or 55 cents per share, a year earlier.
Microsoft recorded total impairment, integration and restructuring expenses of $8.4 billion US including the charges related to the Nokia phone business.
Excluding the charges, Microsoft earned 62 cents per share.