Microsoft Corp. has announced that revenues for the quarter ended June 30, 2015 were $22.2 billion. Gross margin, operating loss, and loss per share for the quarter were $14.7 billion, $(2.1) billion, and $(0.40) per share, respectively.
These results include the impact of a $7.5 billion non-cash impairment charge related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business, in addition to a restructuring charge of $780 million. There was also a charge of $160 million related to the previously announced integration and restructuring plan. Combined, these items totaled $8.4 billion or a $1.02 per share negative impact. Excluding this impact, operating income and EPS would have been $6.4 billion and $0.62, respectively. During the quarter, Microsoft returned $6.7 billion to shareholders in the form of share repurchases and dividends.
The following table reconciles these financial results reported in accordance with generally accepted accounting principles (“GAAP”) to Non-GAAP financial results. Microsoft has provided this Non-GAAP financial information to aid investors in better understanding the company’s performance. All growth comparisons relate to the corresponding period in the last fiscal year.
|
|
Three Months Ended June 30, |
|
||||
|
($ in millions, except per share amounts) |
Revenue |
Gross Margin |
Operating Income (Loss) |
Earnings (Loss) per Share |
||
|
2014 As Reported (GAAP) |
$23,382 |
$15,749 |
$6,482 |
$0.55 |
||
|
Impairment, Integration, and Restructuring Charges |
- |
- |
127 |
0.01 |
||
|
2014 As Adjusted (Non-GAAP) |
$23,382 |
$15,749 |
$6,609 |
$0.56 |
||
|
2015 As Reported (GAAP) |
$22,180 |
$14,712 |
$(2,053) |
$(0.40) |
||
|
Impairment, Integration, and Restructuring Charges |
- |
- |
8,438 |
1.02 |
||
|
2015 As Adjusted (Non-GAAP) |
$22,180 |
$14,712 |
$6,385 |
$0.62 |
||
|
Percentage Change Y/Y (GAAP) |
(5)% |
(7)% |
(132)% |
(173)% |
||
|
Percentage Change Y/Y (Non-GAAP) |
(5)% |
(7)% |
(3)% |
11% |
||
|
|
|
|
|
|
||
The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter. Excluding the effect of foreign exchange rate changes on the GAAP amounts, on a constant currency basis, revenue and gross margin would have declined 2% and 3%, and operating income and EPS would have declined 129% and 176%, respectively. Excluding the effect of foreign exchange rate changes on the Non-GAAP amounts, on a constant currency basis, revenue and gross margin would have declined 2% and 3%, respectively, and operating income and EPS would have declined 1% and increased 8%, respectively.
Microsoft Reports A $2.1B Q4 Loss
