Microsoft has revealed its fourth quarter earnings report today, revealing a revenue of $19.90 billion dollars and a net income of $4.97 billion dollars. Microsoft's Windows Division was up by 6% for the fourth quarter and 5% for the full year in terms of revenue. Unfortunately, Microsoft missed Wall Street's earning expectations this time around.
"While our fourth quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter. We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype, and Xbox LIVE. While we have work ahead of us, we are making the focused investments needed to deliver on long-term growth opportunities like cloud services," Microsoft CFO Amy Hood stated in an official press release.
Microsoft also saw a $900 million inventory write-down for the Surface RT because of unsold devices, after slashing the price by nearly $150 recently. "For Microsoft’s fiscal year 2013, the company’s revenue, operating income, and diluted earnings per share were $77.85 billion, $26.76 billion, and $2.58 per share. These financial results include a $900 million charge, or a $0.07 per share impact, related to Surface RT inventory adjustments," Microsoft states. However, other areas of Microsoft did pretty well during the fourth quarter.
Microsoft's Business Division revenue grew 14% in revenue during the fourth quarter, while Server & Tools revenue grew 9% and Windows Division by 6%. Online Services Division revenue grew 9% and the Entertainment and Devices Division grew 8%. According to Microsoft, there is strong demand for enterprise products and services, especially Office 365, Windows Azure, and Dynamics CRM.
This earnings report simply points out that the Surface RT is costing the company money, and that is obviously not good business. Microsoft also recently revealed the Xbox One entertainment console as well as a complete organizational restructuring.
You can read the entire earnings report at the source link below.