Microsoft cloud drives quarter results of $23.38 billion

BANGALORE, INDIA: Microsoft Corp. has announced a revenue of $23.38 billion for the quarter ended June 30, 2014.

Gross margin, operating income, and diluted earnings per share ("EPS") for the quarter were $15.79 billion, $6.48 billion, and $0.55 per share, respectively.

Microsoft which had acquired Nokia Devices and Services business in April, gained a revenue from the acquired business, gross margin, operating income, and diluted EPS of $1.99 billion, $54 million, $(692) million, and $(0.08), respectively.

Satya Nadella, chief executive officer of Microsoft, said: "We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution. I'm proud that our aggressive move to the cloud is paying off - our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate."

• Office 365 Home and Personal subscribers totaled more than 5.6 million, adding more than 1 million subscribers this quarter.

• The acquired Phone Hardware business contributed $1.99 billion to current year revenue.

• Commercial revenue grew 11 percent to $13.48 billion, with the following business highlights:

• Commercial cloud revenue grew 147 percent with an annualized run rate that exceeds $4.4 billion.

• Windows volume licensing revenue grew 11 percent.

• Server products revenue, including Azure, grew 16 percent, with double-digit growth for SQL Server and System Center.

For Microsoft's fiscal year 2014, the company's revenue, gross margin, operating income, and diluted EPS were $86.83 billion, $59.90 billion, $27.76 billion, and $2.63 per share, respectively.