Microsoft released its third quarter (Q3) earnings earlier today for fiscal year 2014 (FY14). This is the first quarter under new CEO Satya Nadella. The earnings report contained a number of interesting pieces of information including how the Surface business is doing. Microsoft has been relatively quiet about the Surface business since it had to do a $900 million write-off last year. Compared to last year Surface revenue is up 50% to $494 million. Microsoft also stated they are seeing an increasing mix of second generation (Surface 2) and Surface Pro 2 devices. It appears Microsoft’s investment into tablet hardware is starting to pay off and the Surface may be another multi-billion dollar business for Microsoft next year. Source: Microsoft ...

Read More →

Microsoft today announced revenue of $20.40 billion for the quarter ended March 31, 2014. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $14.46 billion, $6.97 billion, $5.66 billion, and $0.68 per share, respectively.     Three Months Ended March 31, ($ in millions, except per share amounts) 2013 As Reported (GAAP) Net revenue recognition for Windows Upgrade Offer, Office Deferral, and Video Game Deferral European Commission Fine 2013 As Adjusted (Non-GAAP) 2014 As Reported (GAAP) %Y/Y (GAAP) %Y/Y (Non-GAAP) Revenue $20,489 ($1,658)       $18,831 $20,403 (0)% 8% Gross Margin $15,702 ($1,658) $14,044 $14,462 (8)% 3% Operating Income $7,612 ($1,658) $733 $6,687 $6,974 (8)% 4% Diluted EPS $0.72 ($0.16) $0.09 $0.65 $0.68 (6)% 5%   “This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer ...

Read More →