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Microsoft FY2014 Q4 Earnings: Revenues Up, Profits Down Slightly 66

Posted by Unknown Lamer
from the still-enough-to-fill-money-pool dept.
Microsoft has released their latest earnings report, and it's not as bleak as last week's news might have you suspect. Quoting Forbes: Microsoft reported $23.38 billion of revenue for the fourth quarter, up 17.5% from the same period last year. Net income, however, came in at $4.6 billion, down from last year and behind Wall Street analysts' consensus estimate, both about $5 billion. At 55 cents earnings per share were down 4 cents and a nickel short of the Street’s call. For the full year, revenue clocked in at $86.8 billion an 11.5% increase from a year earlier. Net income was $22.1 billion and earnings per share were $2.63. They took a hit from finalizing the acquisition of Nokia's handset division (not unexpected). The cloud services side of the business appears to be growing, while traditional software sales have stagnated. The layoffs will cost Microsoft between $1.1 and $1.6 billion over the first half of next year.
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Microsoft FY2014 Q4 Earnings: Revenues Up, Profits Down Slightly

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  • Is there any way to find out how much of M$ revenue/profits are due to government & other public sector contracts?

    It's our money, so I'd be nice to know how much we're paying them.

    • by Anonymous Coward

      Is there any way to find out how much of M$ revenue/profits are due to government & other public sector contracts?

      It's our money, so I'd be nice to know how much we're paying them.

      Microsoft used to report Public Sector revenue in their earnings report, before the new reporting/org structure, so if you look at earnings reports from a couple of years back you can find it. Doubt it has changed much as share of overall MS revenue in this time, so you could extrapolate to today. This would be the global figure, if you are looking for US numbers I don't think that was broken out, but would most likely follow the overall distribution for MS (40% is US&Canada, 60% is international).

      • by Ravaldy (2621787)

        All government spending is available through some channel. The process to obtain such information may differ from one branch of government to another but there is a process.

        Unfortunately the information is not readily available on any web site until someone already collected it and published it.

      • I went here: http://www.microsoft.com/inves... [microsoft.com]

        They have a nice little drop-down to select year/quarter and links to financial statements...it's all right there

        My problem is I don't know how to read this MBA/budget speak...

        I looked at 2009, their xls "financials" info...Q4...

        Saw the breakout by sector tab, but the categories were type of services (servers, 'client', etc) but couldn't see where there was a "Public Sector" or anything similar...couldn't find a category for type of client.

        Also, I"m a bit miffed

        • You are not going to find it on Microsoft's website. By the way, everything I am stating falls under subjective accounting judgments.

          Microsoft must disclose any relationship that is material significant. i.e., if the US Government bought 10% of their stuff they would have to disclose that. Of course, Microsoft sells nothing to the "US Government" – they sell to the executive branch, Social Security Administration, etc.

          Microsoft must break out results along geographic lines. i.e. North America. Still n

  • by Squidlips (1206004) on Wednesday July 23, 2014 @11:57AM (#47516451)
    There is sure to be a Dead Sea effect and MS's long-term prospects cannot be great if they have lost / will lose their best people
    • Does MS want "great" people? Seems to me that MS wants people who are cheaper, and easier to push around.

      MS just churns out re-hashed products. Nothing that takes any great creative minds.

      • by beefoot (2250164)
        Great people does not mean expensive people.
      • by Ravaldy (2621787) on Wednesday July 23, 2014 @12:42PM (#47516809)

        All I hear is your butt hole whistling non sense. You are saying this without any backing. If you speak of their office product line then FINE, but the rest of their products including Server and OS products are continuously evolving to take advantage of new hardware and strategies that help businesses. This is especially true of their server offerings. Even the office products add new features that if you don't care for can avoid by sticking to your old version. Office 2000 can still read files created with the newest version of office so as far as I'm concerned nobody can claim they were forced to move forward.

        Creativity has nothing to do with the progress MS has made in the past years. They continue to offer drop in solutions that don't require ridiculous amounts of expertise to implement which is how it should be for any business all the way to small enterprises. I can't speak for large enterprise because I lack that experience but I can speak for anything below that.

        Their development tools (VS Series) are continuously implementing the newest standards as well as major improvements to their windows only features.

        You sound like a hardcore Linux fanboy that can't see past his monitor. Real Linux techs understand where each operating system belongs and what it's true application in the real world is. You clearly don't.

        • by mattack2 (1165421)

          Office 2000 can still read files created with the newest version of office so as far as I'm concerned nobody can claim they were forced to move forward.

          Isn't this only true if the person on the newer version explicitly saves them in 'old' format?

    • Microsoft is moving away from the home user market their old Bread and Butter and moving towards more to B2B and Government type of work. Kinda like IBM.
      They are not going to switch over quickly, and they are going to try to gain consumer market again. But MS will be making more and more of its money from the boring stuff.

    • by steelfood (895457)

      Um, what? How will they lose their best people? Via layoffs? That's possible, but it's also possible they'll lose a chunk of dead weight in the middle layers.

      A lot of the most talented people don't care who they work for, as long as the pay's good and the job's interesting. And Microsoft has a lot of cash.

      Initiating a change to a stagnant or destructive corporate culture is a good thing. Whether the results will be beneficial or even more destructive remains to be seen.

    • There is sure to be a Dead Sea effect and MS's long-term prospects cannot be great if they have lost / will lose their best people

      Having lost control of the mobile market to Apple and Google, Microsoft can now look forward to its sunset years, slowly rotting away. Microsoft employees can look forward to more cuts, sooner rather than later. The one constant will be the backlbiting culture, which will increase as the concentration of rats on the ship increases.

  • by msobkow (48369) on Wednesday July 23, 2014 @01:34PM (#47517171) Homepage Journal

    Most companies are happy to turn a 10% profit after expenses, employees, and so forth. 20% is a fantasy for them.

    Yet the greedy Wall Street pricks aren't happy with a 20% profit.

  • by Anonymous Coward

    Microsoft should be made to pay that money back to the consumers who were coerced to upgrade needlessly. This is just another travesty in the extremely long list of travesties in the 21st century so far.

  • by vinn (4370) on Wednesday July 23, 2014 @04:29PM (#47518493) Homepage Journal

    I find it a bit ironic that Microsoft has helped usher in this huge digital age where none of us really want to "own" digital content any more. We don't rush out to buy CD's any more, we subscribe to music services or stream Pandora. We don't go out and purchase DVD's, we subscribe to Netflix or rent some viewing via iTunes.

    Yet, despite some little things like Office 365, Microsoft still makes its bread and butter via selling software to OEM's and volume customers that runs on hardware, both of which many of us are increasingly not wanting to own. I f*cking hate installing an OS on a server and then making sure the damn thing stays running. I'd much rather rent the VM in the cloud. Even better, just let me subscribe to your web service.

    • by mattack2 (1165421)

      Yet, despite some little things like Office 365, Microsoft still makes its bread and butter via selling software to OEM's and volume customers that runs on hardware, both of which many of us are increasingly not wanting to own. I f*cking hate installing an OS on a server and then making sure the damn thing stays running. I'd much rather rent the VM in the cloud. Even better, just let me subscribe to your web service.

      Is there an irony here? I think a non-insignificant people *don't* want to be on the subscr

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