The first quarter earnings were reported by Microsoft on Thursday and the sales and earnings figures were better than what the market and analysts had expected even when the market for new computers has remained sluggish.
The net income posted by the company came to $5.4 billion dollar which translates to 67 cents per share. The revenue for the first quarter stood at $21.4 billion. The analysts had expected a revenue of around $21 billion and EPS of 59 cents.
More than 3 million new consumers were added to Office 365 subscription. The revenue from Office saw an increase of 70 percent. And the revenue from the cloud and server products saw an increase of 13 percent. Microsoft operating chief Kevin Turner said in a statement:
“We’re seeing great traction with businesses who want to bring Microsoft’s cloud, mobile device management technology and data analytics together to improve security and productivity resulting in almost 70 percent year-over-year growth in our commercial cloud run rate.”
The news on the personal computing and Widows side is not good where the revenue was a decrease of 17 percent and stood at $9/4 billion because of weak PC and Windows phone sales. The revenue on the Phone side saw a drop of 54 percent. Windows revenue saw a drop of 6 percent.
Search revenue was a good news where Bing has finally become profitable and search revenue was up 29 percent, party aided by increased searches from Windows 10 devices. Xbox Live subscribers also have grown to 29 million with a 28 percent increase.
Microsoft shares were trading 5 percent higher after the earnings were announced.