Microsoft blames Nokia acquisition for its biggest quarterly loss - PC Retail

Microsoft blames Nokia acquisition for its biggest quarterly loss

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Microsoft has revealed its biggest net loss of $3.2 billion during its financial quarter ending June 30th 2015.

The firm was hit by $8.4 billion in charges during the quarter, which was formed of a $7.5 billion non-cash impairment charge related to assets associated with its acquisition of the Nokia Devices and Services business.

Also included in the charge was a restructuring fee of $780 million, as well as a charge of $160 million related to the previously announced integration and restructuring plan.

For the financial year overall, Microsoft posted net income of $12.2 billion, $10 billion less than the previous year.

While devices and consumer revenue declined 13 per cent, Microsoft reported that Surface revenue, search advertising revenue, commercial cloud revenue and server products and services revenue all grew.

Office 365 Consumer subscribers also increased to 15.2 million, with nearly three million subscribers added in the quarter.

“We finished the fiscal year with solid progress against our strategic priorities, through strong execution and financial discipline, which is reflected in our results for the quarter and the year,” said Amy Hood, executive vice president and CFO at Microsoft.

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