A trader works on the floor of the New York Stock Exchange shortly before the end of the day's trading. (Photo : Reuters)
Microsoft's report on its last quarter's revenue matches analyst's opinion showing competitive performance on revenue but Wall Street analysts pointed out decline on the company's foundation, its software business.
The company's report shows that its total revenue at the end of the quarter, which ended on December's end, is $26.47 billion. The companies earning per diluted share of $0.71 reached analysts expectation. Microsoft's revenue increased by 8 percent from on 2014 while, on the other hand, its net income decreased by 10.6 percent to $5.86 billion from 2014 on the same quarter, according to Reuters.
Microsoft's made much on growth on both enterprise and no-enterprise subscriptions like Office 365, Azure, Dynamics, CRM, Surface, and others.
However, the success of other Microsoft products is incomparable to what they accumulate from its main business contributors: Windows licenses, Office and productivity and server and tools products. The firm's Device and Consumer Licensing division is down by 25 percent, sales of consumer Windows licenses are slumped to 13percent for EOM's and 25 percent for Office sales and it Commercial licensing side is also down by 13 percent.
The decline on Office is due to the transition of the subscribers to Office 365. Office 365 users, based on Microsoft report, increased by 30 percent on 2014 of the same quarter and it created a slump on Office, according to The Register.
Microsoft's and other slumping companies added to the decrease of U.S. stocks. The firm declines with other companies like tech.SPLRCT losing a one day drop of 3.3 percent, Caterpillar (CAT.N) dropping 7.2 percent, Procter and Gable (PG.N) dropping their shares to 3.4 percent, DuPont Co (DD.N) also plumed along with other companies.
The market winners are Apple rising for about 5.4 percent and getting a higher than expected percentage along with AT&T and Yahoo.
