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Rise in revenue for Microsoft but Nokia deal prompts profit slump
[July 23, 2014]

Rise in revenue for Microsoft but Nokia deal prompts profit slump


(City A.M. (UK) Via Acquire Media NewsEdge) MICROSOFT reported a greaterthen-expected 17 per cent jump in revenue yesterday, beating Wall Street expectations, but its profit fell seven per cent, chiefly due to the costs of incorporating the struggling handset business of Nokia.



Shares of the world's largest software company, which hit 14-year highs this week, rose 0.3 per cent in after-hours trading.

"These results are good enough for the Street and this is another step in the right direction," said Daniel Ives, an analyst at FBR Capital Markets.


"Nokia was a bit worse than the Street was expecting but that is not totally surprising given the massive growth challenges that business faces in the field." Nokia, which Microsoft bought this year in an attempt to take on Apple and Samsung directly in the fast-growing smartphone market, added almost $2bn (£1.71bn) to Microsoft's quarterly revenue, but posted an operating loss of $692m (£405.5m), which included some one-time costs.

Microsoft reported fiscal fourth-quarter profit of $4.61bn, compared with $4.96bn in the same period a year ago. Overall quarterly revenue rose 17 per cent to $23.38bn, above analysts' average estimate of $23bn, mainly because of additional sales from Nokia.

Reuters (c) 2014 City A.M.

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