FY16 Q3 - Productivity and Business Processes Performance- Investor Relations – Microsoft
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Earnings Release FY16 Q3
Productivity and Business Processes
Productivity and Business Processes revenue increased $65 million or 1%, due to higher revenue from Office and Microsoft Dynamics. Productivity and Business Processes included an unfavorable foreign currency impact of approximately 5%.
• Office Consumer revenue increased $23 million or 3%, driven by revenue growth from Office 365 Consumer subscribers and higher revenue per license, offset in part by an unfavorable foreign currency impact of approximately 3% and a decline in the consumer PC market.
• Office Commercial revenue increased $20 million, driven by higher revenue from Office 365 Commercial, mainly due to growth in subscribers, offset in part by an unfavorable foreign currency impact of approximately 7% and lower transactional license volume, reflecting a continued shift to Office 365 Commercial and a decline in the business PC market.
• Microsoft Dynamics revenue increased 4%, mainly due to higher revenue from Dynamics CRM Online, driven by seat growth. Microsoft Dynamics revenue included an unfavorable foreign currency impact of approximately 5%.
Productivity and Business Processes operating income decreased $210 million or 7%, driven by lower gross margin. Gross margin decreased $242 million or 4%, primarily due to higher cost of revenue. Gross margin included an unfavorable foreign currency impact of approximately 5%. Cost of revenue increased $307 million or 32%, primarily due to the increasing cloud mix of revenue and higher datacenter costs to deliver cloud services.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards
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FY16 Earnings Release Schedule
- Q4-Tuesday, July 19