The US tech giant posted a net profit of US$3.8 billion as revenues dipped six per cent to US$20.5 billion in the fiscal third quarter to Mar 31.
One of the main takeaways of Microsoft's most recent quarterly report was that mobile revenue dropped 46 percent year-over-year. This currency impact was estimated as reducing revenue by about $0.8 billion. On the other hand, consumer Windows OEM revenue climbed 15 percent.
Both revenue and net income were down from the previous year's levels.
Revenue in Microsoft's intelligent cloud business, which includes the Azure cloud infrastructure-and-services business as well as products such as noncloud-related server software, rose 3.3 per cent to $6.1 billion in the quarter.
But in the second quarter, Intelligent Cloud grew five per cent (or 11 per cent in constant currency) to $6.3bn.
Install Office 365 in OS X El Capitan. Commercial seats are up 57 percent year-on-year.
But the catalyst of Microsoft's "strong results" wasn't Windows, but the cloud business, which continues to improve every single quarter. Azure experienced revenue growth of 120% in constant currency. Among server products, the company saw gains in subscription revenue offset by declines in transactional purchases. A key part of the trend is Azure revenue, which grew 110 percent year over year.
Revenue fell to $20.5 billion from $21.7 billion the year before. While sales of personal computers have been sliding for the past four years, Nadella has been working to make Microsoft less dependent on revenue from its flagship Windows operating system, used mostly on PCs.
The quarter was an abysmal one for worldwide personal-computer shipments, which slid to their lowest quarterly total since 2007 in the period, according to market researcher Gartner Inc.
Hood said operating income in the company's Office 365 and Dynamics businesses declined by 7%.
Microsoft sold only 2.3 million Lumia phones during the quarter, 73 percent fewer units compared with the first quarter of 2015.
The future of Microsoft's smartphone business is in question after the company revealed its Lumia handset sales dropped sharply in the latest quarter. Microsoft's Windows smartphones continue their freefall with a 46 percent year-over-year decline in sales on a constant-currency basis. The overall segment grew by 3% with revenue reaching $6.1 billion.
Microsoft says Windows 10 is now running on more than 270 million machines, a healthy figure for software that was released only nine months ago.
Ronaldo hurt, in doubt for CL first legReal Madrid star Gareth Bale has laughed off suggestions he does not get on with Cristiano Ronaldo. Zidane said Ronaldo , who has 47 goals this season , always wanted to play every game.
Source: Microsoft's Q3 2016: Surface up and Windows Phone down again
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