Microsoft Faces Huge Loss For Posting A Write Down

Tech giant Microsoft recorded a net loss of US$3.2 billion dollars for its April to June quarter in 2015, as a result of a massive write down of the value of its Nokia assets. A part of the loss is also due to the poor demand of its Windows operating systems, reported earlier this week.

The share prices dropped to US$0.40 per share on total revenue of US$22.2 billion which indicates a five percent decline in sales from what it was in the same quarter last year. Microsoft recorded a profit of $4.6 billion in the same quarter a year back. Chief Financial officer, Amy Hood claimed that Microsoft ended its financial year highlighting a “solid progress against our strategic priorities”.

The company announced the write down along with 7,800 other related cut outs on July 8, the according to the polls generated by the Thompson Reuters, the loss that was being expected as a result of the lay off by the analysts was US$0.30 per share, which was much less that what has actually emerged. The analysts had also expected the revenues to fall by six percent.

Microsoft had hit $0.62 per share thereby outdoing the expectations on the earnings and revenues per share that were exclusive of the write downs. However the expenditures relating to the restructuring and businesses of the Nokia Devices and services ended much higher than what was indicated by Microsoft earlier in the month.

Meanwhile, the CEO of Microsoft, Satya Nadella chose to focus on the positive side of the statement, said, "Our approach to investing in areas where we have differentiation and opportunity is paying off with Surface, Xbox, Bing, Office 365, Azure and Dynamics CRM Online all growing by at least double-digits. The upcoming release of Windows 10 will create new opportunities for Microsoft and our ecosystem."

According to BBC news the net profit of the company has come down to US$12.2 billion but the total revenue rose by US$6.7 billion to US$93.5 billion.

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