Bing profitable, but Microsoft revenue down 12 percent as shift to cloud continues
Microsoft posted revenue of $20.4 billion in the first quarter of its 2016 financial year, down 12 percent from the same quarter a year ago. Operating income was $5.8 billion, down 1 percent, and net income was $4.6 billion, up 2 percent. Earnings per share were $0.57, a six percent increase.
The company attributed much of the decline to the strong dollar. The dollar value of prices charged outside the US has declined as the dollar has grown stronger, and with much revenue coming from beyond America’s borders, this is having a material effect on earnings. This effect reduced revenue by some $1.2 billion, operating income by $0.69 billion, and net income by $0.65 billion.
The quarter also saw the introduction of a new reporting structure just a couple of years after the last change to the reporting structure. The company is now divided into three reporting segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.