FY15 Q2 - Devices and Consumer Licensing Performance - Investor Relations – Microsoft
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Earnings Release FY15 Q2
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.
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FY15 Earnings Release Schedule
- Q3-Thursday, April 23
- Q4-Tuesday, July 21