Microsoft has unveiled an action plan designed to return its newly acquired Nokia business to growth after the devices unit dragged its profits down last quarter.
For the three months to 30 June, Microsoft's net income slumped annually by 7.1 per cent to $4.6bn (£2.70bn), affected by the Nokia Devices and Services (NDS) division which it said made a $692m loss over the same period.
Microsoft's overall revenue for the quarter jumped 17.5 per cent annually to $23.38bn.
For the full year, Microsoft's net profit inched up one per cent year on year to $22.07bn on turnover which rose 11.5 per cent to $86.83bn over the same period.
New chief executive Satya Nadella swung the axe on 18,000 jobs last week – the vast majority of which will come from the Nokia division. On an earnings call last night, the vendor unveiled further plans to restructure the devices business with the aim of seeing growth there soon.
"We [are] set to realise more than $1bn in synergies and as a result we will be on a path to reach operating break-even for the phone business in fiscal year 2016," said Microsoft's chief financial officer Amy Hood on a conference call transcribed by Seeking Alpha.
The vendor did not break down specific regional numbers for Q4 but did say performance was "strong" across most markets, particularly in North America and Europe.
Microsoft UK's SMB and partner boss Clare Barclay told CRN at its Worldwide Partner Conference (WPC) last week that the UK business had grown 18 per cent annually – faster than emerging markets.
Cloud was the theme of WPC and on the earnings call Hood pointed to the firm's success in the sector.
"We saw strong commercial growth across Office 365 particularly with SMB customers," she said. "Additionally, we added over one million new subscribers to Office 365 Home and Personal and we ended the quarter with 5.6 million users. Azure has also grown dramatically."
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