FY16 Q1 - Productivity and Business Processes Performance - Investor Relations - Microsoft

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Earnings Release FY16 Q1

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Productivity and Business Processes

Productivity and Business Processes revenue decreased $184 million or 3%, mainly due to an unfavorable foreign currency impact of approximately 7%.

• Office Consumer revenue decreased $105 million or 13%, driven by an unfavorable foreign currency impact of approximately 9% and a decline in the consumer PC market, offset in part by revenue growth from Office 365 Consumer, mainly due to recurring subscriptions.

• Office Commercial revenue decreased $98 million or 2%, driven by an unfavorable foreign currency impact of approximately 7%, as well as lower transactional license volume, reflecting a decline in the business PC market. The decrease was offset in part by revenue growth from Office 365 Commercial, mainly due to an increase in subscribers and higher premium mix.

• Microsoft Dynamics revenue increased 3%, mainly due to higher revenue from Dynamics CRM Online, driven by seat growth.

Productivity and Business Processes operating income decreased $233 million or 7%, driven by lower gross margin, offset in part by a reduction in operating expenses. Gross margin decreased $363 million or 6%, primarily due to the decline in Office revenue, as well as higher cost of revenue. Gross margin included an unfavorable foreign currency impact of approximately 7%. Cost of revenue increased $179 million or 21%, primarily due to the increasing cloud mix of revenue. Operating expenses decreased $130 million or 6%, driven by lower sales and marketing expenses. Sales and marketing expenses decreased $89 million or 7%, mainly due to a reduction in headcount-related 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.

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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards

FY16 Earnings Release Schedule

  • Q2-Thursday, January 28
  • Q3-Thursday, April 21
  • Q4-Tuesday, July 19

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