Microsoft quarterly revenues fall 10 percent

In the same quarter previous year, Microsoft posted earnings per share of $0.71, revenue of $26.5 billion and net income of $5.86 billion. The company reported non-GAAP revenue of $25.7 billion for the last quarter and $0.78 of adjusted per-share profit.

Intelligent Cloud revenue climbed 5% or 11% in constant currency with a 140% increase in Azure revenue in constant currency.

Windows revenue from computer makers dropped 5 percent, though that was less than overall PC market decline.

The company saw Office 365 revenue increase 70pc with Office 365 consumer subscribers increasing to 20.6m users.

The number of people using the Xbox Live service for digital content and video games climbed 30% to a record 48 million. Companies moving much of their information technology off premises, part of the cloud-computing trend, proved a bright spot.

Revenue in the business that includes Windows fell 5% to $12.66bn.

Amazon-which also presented its earnings this afternoon-revealed today that its competing cloud computing product, Amazon Web Services, is seemingly growing at a slower rate than Microsoft’s product, despite being the industry leader.

A division it calls “Intelligent Cloud”, which includes both Azure cloud business and Windows Server software sales, filed revenues of $6.3bn in the quarter, up by five per cent. CNBC has reported that a third of Fortune 500 companies opt for Microsoft Enterprise Mobility Solutions, marking its cloud products as gaining quick traction among Enterprise clients.

“It was a strong holiday season for Microsoft, highlighted by Surface and Xbox”, Chief Operating Officer Kevin Turner said in a statement.

Mobile phone revenue were down 4%, but sales of Surface Pro 4 and Surface Book pushed up revenue growth by 29% year-over-year – about $1.3 billion in sales for the Pro and Book line.

“Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices”, the Indian-born top executive added. Windows Continuum, which allows its mobile phones to be connected to a monitor for a PC experience powered by Windows 10, is one of the features the company is banking on.