FY16 Q2 - Performance - Investor Relations - Microsoft
Browse Prior Earnings Releases:
Earnings Release FY15 Q2
Performance
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.
Download Earnings Related Files
Earnings Release Pages
Related Information
FY15 Earnings Release Schedule
- Q3-Thursday, April 23
- Q4-Tuesday, July 21