FY16 Q2 - Productivity and Business Processes Performance- Investor Relations – Microsoft

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Earnings Release FY16 Q2

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Productivity and Business Processes

Productivity and Business Processes revenue decreased $132 million or 2%, primarily due to an unfavorable foreign currency impact of approximately 7%.

• Office Consumer revenue decreased $107 million or 14%, driven by an unfavorable foreign currency impact of approximately 6% and a decline in the consumer PC market, offset in part by revenue growth from Office 365 Consumer, mainly due to recurring subscriptions, and a higher percentage of PCs with Office.

• Office Commercial revenue decreased $36 million or 1%, driven by an unfavorable foreign currency impact of approximately 6%. Revenue from Office 365 Commercial increased, mainly due to growth in subscribers and higher premium mix, offset in part by lower transactional license volume, reflecting a continued shift to Office 365 Commercial and a decline in the business PC market.

• Microsoft Dynamics revenue increased 3%, mainly due to higher revenue from Dynamics CRM Online, driven by seat growth. Microsoft Dynamics revenue included an unfavorable foreign currency impact of approximately 8%.

Productivity and Business Processes operating income decreased $282 million or 8%, driven by lower gross margin, offset in part by lower operating expenses. Gross margin decreased $353 million or 6%, primarily due to higher cost of revenue, as well as the decline in Office revenue. Gross margin included an unfavorable foreign currency impact of approximately 7%. Cost of revenue increased $221 million or 23%, primarily due to the increasing cloud mix of revenue and higher datacenter costs to deliver cloud services. Operating expenses decreased $71 million or 3%.

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

  • Q3-Thursday, April 21
  • Q4-Tuesday, July 19

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