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Microsoft Surface RT drag results

Written By Unknown on Friday, July 19, 2013 | 11:28 PM

July 19, 2013, Microsoft officially announced 2013 second quarter earnings, thanks to the Windows business revenue growth and the rapid development of Windows Phone, Microsoft's 2013 second quarter revenue of $ 19.9 billion, net profit of $ 4.97 billion , due Surface RT tablet inventory adjustments related expenses $ 900 million, Microsoft's revenue and profit for the quarter were up to market expectations.
According to Microsoft's 2013 second quarter results, the company's total revenue of $ 19.9 billion, net profit of 4.97 billion U.S. dollars, earnings per share of 59 cents, by the Surface RT tablet inventory write-down of $ 900 million impact on earnings per share reduced by 7 cents. And the results compared to the second quarter of 2012, revenues increased 10 percent, successful turnaround. Prior to Microsoft that Wall Street analysts on average expected quarterly results was $ 20.73 billion revenue, revenue per share of 75 cents.
Microsoft Surface RT in the book writedowns $ 900 million, mainly due to the global harmonization of the product after the price adjustment related to each Surface RT price $ 150, now Microsoft Surface RT tablet PC inventory is still very adequate, this last quarter of 2012 product to the production of 300 million units to 500 million units, and were mainly Microsoft products for their confidence too full, analysts estimated that by March 2013 Surface RT global sales of only 100 million units. Microsoft Surface RT sales price adjustment proves that this product is really up to expectations, in addition to the price impact of corporate profits, the Microsoft Surface RT invest huge marketing costs are not brought much in return.
Microsoft's enterprise business has been strong, server and tools division revenue of $ 5.5 billion, profits of up to $ 2.35 billion, the business sector was $ 7.2 billion operating income, operating profit was $ 4.87 billion, and business contributed most of the profits for Microsoft . Windows division revenue was $ 1.1 billion, compared to revenues of the sector was 24.2 billion U.S. dollars, by the impact of the decline in the PC market, Microsoft Windows revenue also deteriorated. Online services division lost $ 372 million, compared to the second quarter of 2012, $ 6.672 billion for the huge losses already have a huge upgrade.Entertainment and devices division lost $ 110 million, compared with a loss of $ 252 million.
Microsoft CEO Steve Ballmer said that after restructuring after Microsoft accounted for a good position, the long-term success. Microsoft CFO Amy Hood believes that although 2013 second quarter results were affected by the impact of the decline in the PC market, but Microsoft's enterprise and cloud services showed strong earnings season has not been hit a historical record.
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