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Microsoft Results Top Estimates(dpa-AFX International Compact Via Acquire Media NewsEdge) REDMOND (dpa-AFX) - Software giant Microsoft Corp. (MSFT) said Thursday after the markets closed that its first quarter profit fell 13% from last year, hurt mainly by integration and restructuring costs even as revenue surged 25% thanks to strong sales of its gadgets and cloud-based products. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue. "We are innovating faster, engaging more deeply across the industry, and putting our customers at the center of everything we do, all of which positions Microsoft for future growth," said Satya Nadella, chief executive officer of Microsoft. Microsoft shares are currently gaining 4.20% in after hours trading after closing the day's regular trading session at $45.02, up 64 cents or 1.44%. The shares trade in a 52-week range of $33.57 to $47.57. Nadella, who took over the helm in February, has been giving focusing on cloud-based business services. At the same time, he wants a slimmer and simpler Microsoft. In July, Microsoft announced plan to eliminate up to 18,000 positions over the next year, as part of a restructuring plan to simplify its operations and align the Nokia Devices and Services business with the company's overall strategy. Microsoft acquired Nokia Oyj's (NOK) handset business in April. For the first quarter ended September 30, 2014, the world's biggest software company reported net income of $4.54 billion or $0.54 per share, compared to $5.24 billion or $0.62 per share for the year-ago quarter. The latest quarter results include $1.14 billion of integration and restructuring expenses, or an $0.11 per share negative impact, related to both Microsoft's restructuring plan announced in July and the ongoing integration of the Nokia Devices and Services business. On average, 20 analysts polled by Thomson Reuters expected the company to earn $0.49 per share for the first quarter. Analysts' estimates typically exclude special items. Redmond, Washington-based Microsoft said revenue for the first quarter rose 25% to $23.20 billion from $18.53 billion in the same quarter last year. Twenty-eight analysts had a consensus revenue estimate of $22.02 billion for the first quarter. The company's devices and Consumer revenue increased 47% to $10.96 billion in the first quarter. Office 365 Home and Personal subscribers totaled more than 7 million, up more than 25% from the previous quarter. Total Xbox console sales jumped 102% to 2.4 million units. Late last month, Microsoft unveiled the next version of its popular operating system, Windows 10, touted as its "most comprehensive platform ever." Commercial revenue grew 10% to $12.28 billion in the first quarter. Commercial cloud revenue surged 128%, driven by Office 365, Azure and Dynamics CRM. Copyright RTT News/dpa-AFX |