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Microsoft exceeds expectations with $4.54 billion net income
[October 24, 2014]

Microsoft exceeds expectations with $4.54 billion net income


(EFE Ingles Via Acquire Media NewsEdge) San Francisco, Oct 24 (EFE).- Microsoft has surpassed expectations of analysts, by announcing net income in the quarter that ended on September 30 of $4.54 billion, equivalent to 54 cents per share.

In total, the figure was less than $5.24 billion in the same period last year, but was celebrated equally by the company which expected earnings of 49 cents per share, Microsoft said Thursday.

Microsoft shares, which have been valued at 33 percent over the past year, rose by 3 percent on Wall Street.

The results include the restructuring impact related to the cuts announced in July in its Nokia division, which accounted for $1.1 billion and explained that quarterly profits fell over the same period in 2013.

The company announced Wednesday that it will replace Nokia brand on new phones manufactured after closing the acquisition of the mobile phones from the Finnish company on April 25 by $7 billion.

The Nokia brand will continue being used by the Finnish company, since Microsoft only sold its mobile phone division.

The Microsoft smartphone, Lumia, is far behind Apple iPhones and and those with Google Android system.

Microsoft reported that its mobile phone sales reached $9.3 million in the quarter, indicating a slight improvement compared to the previous period owing to the rise in European sales.

Microsoft CEO Satya Nadella emphasized during a conference in San Francisco its business strength in the Cloud system (virtual data storage system) and said that the company enjoyed a unique position in helping its corporate customers modernize its technology.



"We have begun the (fiscal) year with strength, with thrust in the Cloud business and significant progress in our devices division," Microsoft financial adviser Amy Hood said in a statement.

Revenues from software to the Cloud business more than doubled in the quarter that ended on September 30.


Around two-thirds of the company's gross profits come from the software sales to companies.

Revenues of the consumption division, and devices, including Nokia, increased by 47 percent, to $10. 96 billion.

Xbox console sales doubled to 2.4 million units.

The results' announcement comes at a time when Nadella courted controversy on wage differences between men and women.

This week Nadella's compensation exceeded $84 million in the fiscal year ending June 30. EFE tb/pa/dmt-sp/bj/amg (c) 2014 EFE News Services (U.S.) Inc.

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