Microsoft Corp (MSFT)
Market Cap
52 Week High
52 Week Low 
Supplied by Morningstar Inc
2015 Annual Report
Earnings Release FY14 Q1
Revenue growth driven by Surface sales
Improved sales and marketing efforts
Sold more than double the units than previous quarter
Surface 2 and Surface Pro 2 launched Oct. 22nd
1.2 million Xbox consoles sold
Xbox One will launch Nov. 22nd
Gross margin
Product costs grew with increased Surface sales and non-product expenses incurred to ready inventory lines for Surface 2 launch

D&C Hardware revenue increased $401 million or 37%, due primarily to Surface revenue of $400 million. The general availability of Surface RT and Surface Pro started October 26, 2012 and February 9, 2013, respectively.

D&C Hardware gross margin decreased $242 million or 54%, due to a $643 million or 101% increase in cost of revenue, offset in part by higher revenue. D&C Hardware cost of revenue increased, primarily due to $645 million higher Surface cost of revenue. Surface product costs increased with higher volumes sold, while other costs grew as we ready inventory lines for the Surface 2 launch and the holiday sales cycle.

Download Segment Information:Excel (27KB)
Devices and Consumer Hardware
RESULTS (in millions, except percentages)
Q114 Q113 Change
Revenue $ 1,485 $ 1,084 37%
Gross Margin $ 206 $ 448 (54)%
FY14 Earnings Release Schedule
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