Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Applications
    • Applications
    • Cloud
    • Mobile
    • PC Hardware

    Microsoft Rides Cloud to a Strong Q3

    Written by

    Pedro Hernandez
    Published April 24, 2014
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      While mostly under the leadership of new CEO Satya Nadella, Microsoft beat Wall Street analyst estimates on the company’s profitability for the third-quarter fiscal year 2014 ending March 31, 2014. Nadella took over as CEO from Steve Ballmer on Feb. 4.

      After market close on April 24, the software and cloud services giant announced that it had booked sales of $20.4 billion and posted net income of $5.66 billion, or $0.68 per share. Analysts were expecting earnings per share of $0.63.

      Revenue was nearly in line with estimates of $20.39 billion and was up 8 percent from last year after adjusting for various offers, deferrals and a fine levied by the European Commission, according to the company. Microsoft was charged $733 million (€561 million) in March 2013 by regulators over the company’s failure to provide a browser selection screen on PCs sold in Europe.

      During an afternoon earnings conference call, which fell on the eve of the expected close of the $7 billion Microsoft-Nokia deal, Nadella briefly commented that the addition of the smartphone maker’s personnel and technology “will enhance our device capabilities.” He also reported “strong momentum in cloud services” and said Office 365 and Azure are “both performing extremely well.”

      Echoing the “mobile-first, cloud-first” theme that is emerging as an early hallmark of Nadella’s tenure, the chief executive said in a statement that Microsoft is “making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions” and is well-positioned for long-term growth. Bing search revenue jumped 38 percent year-over-year and now accounts for 18.6 percent share of the U.S. search market. Office 365 Home has more than 4.4 million subscribers, approximately 1 million of which signed up in the third quarter.

      Windows OEM revenue grew 4 percent on the strength of a 19 percent increase in Windows OEM Pro sales. Non-Pro revenue dipped 15 percent, however. Sales of the company’s Surface tablet line increased 50 percent for a total of $494 million. Microsoft sold 1.2 million Xbox One consoles during the quarter.

      All told, Microsoft’s Devices and Consumer division generated $8.30 billion in revenue during the third quarter, a 12 percent gain over the same period last year.

      The company’s commercial unit posted $12.23 billion in revenue, a 7 percent improvement over the same period last year.

      Microsoft Chief Operating Officer Kevin Turner said in a statement that his company continues “to win share in areas like cloud services, data platform, and infrastructure management.” Windows Server, Office Commercial and SQL Server revenues were up 10 percent, 6 percent and 15 percent, respectively.

      Strong demand for the company’s cloud services pushed Azure revenue up a whopping 150 percent, reported the company. Microsoft CFO Amy Hood said during the conference call that the company “again outperformed the enterprise IT market.”

      Windows volume license sales rose 11 percent. According to Microsoft, nearly 90 percent of enterprise desktops now run Windows 7 or 8.

      Pedro Hernandez
      Pedro Hernandez
      Pedro Hernandez is a writer for eWEEK and the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.