FY16 Q2 - Performance - Investor Relations - Microsoft

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Earnings Release FY15 Q2

Performance

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Performance

Revenue increased $2.0 billion or 8%, reflecting the acquisition of NDS and growth from our Commercial Cloud, offset in part by a decline in Xbox Platform, Windows Phone, Office Commercial, and Windows OEM revenue. Revenue included an unfavorable foreign currency impact of approximately 1%, and we continued to experience revenue declines in certain countries, primarily Japan.

Gross margin increased $137 million or 1%, primarily due to higher revenue, offset in part by a $1.8 billion or 22% increase in cost of revenue. Cost of revenue increased, mainly due to the acquisition of NDS and Commercial Cloud, offset in part by a decline in Xbox Platform.

Operating income decreased $193 million or 2%, reflecting integration and restructuring expenses associated with our Restructuring Plan, as well as increased research and development expenses, offset in part by higher gross margin and a decline in general and administrative expenses. Integration and restructuring expenses were $243 million, or $0.02 in diluted earnings per share. Key changes in operating expenses were:

• Research and development expenses increased $155 million or 6%, mainly due to increased investment in new products and services in the Devices engineering group, including NDS expenses, and Cloud and Enterprise engineering group, reflecting ongoing commitment to our mobile-first and cloud-first strategy.

• General and administrative expenses decreased $100 million or 8%, mainly due to lower headcount-related expenses and legal charges, offset in part by NDS expenses.

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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