FY15 Q2 - Devices and Consumer Licensing Performance - Investor Relations – Microsoft

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Earnings Release FY15 Q2

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Devices & Consumer Licensing

D&C Licensing revenue decreased $1.4 billion or 25%, mainly due to a decline in Windows Phone revenue, as well as lower revenue from licenses of Windows OEM and Office Consumer. Windows Phone revenue decreased $635 million or 61%, primarily due to prior year revenue associated with joint strategic initiatives with Nokia that ended in conjunction with the acquisition of NDS. Windows OEM revenue declined $455 million or 13%, due to a 13% decrease in both OEM Pro revenue and OEM non-Pro revenue. Windows OEM Pro revenue decreased, primarily due to benefits realized from the expiration of support for Windows XP in the prior year and an increased mix of lower-priced licenses for devices sold to academic customers. Windows OEM non-Pro revenue declined, mainly due to an increased mix of opening price point devices sold. Office Consumer revenue declined $208 million or 25%, reflecting the shift of customers to Office 365 Consumer, and declines in the Japan PC market, where Office has high attach to PCs.

D&C Licensing gross margin decreased $1.1 billion or 22%, primarily due to the decline in revenue, offset in part by a $272 million or 48% decrease in cost of revenue. D&C Licensing cost of revenue decreased, mainly due to a $224 million decline in traffic acquisition costs, primarily driven by prior year costs associated with our joint strategic initiatives with Nokia.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

Download Earnings Related Files

FY15 Earnings Release Schedule

  • Q3-Thursday, April 23
  • Q4-Tuesday, July 21

Microsoft Corp (MSFT)

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