Microsoft posted its fiscal Q4 2014 results today, and the mood must be good at the executive offices in Redmond despite an announcement of 18,000 job losses, most of which are from Nokia.
Indeed, Nokia was the major black spot on a fairly positive balance sheet. The company posted revenues of $23.38 billion (all numbers USD) and operating profit of $6.48 billion for an EPS of $0.55.
Nokia contributed just under $2 billion in revenue, but its 5.8 million Lumias and 30.3 million non-Lumias dragged down the EPS by $0.08 with an overall operating loss of $692 million. In comparison, Nokia sold 7.4 million Lumias in the same period a year ago, as well as 53.7 non-Lumias.
While it’s unlikely that after laying off 70% of Nokia’s workforce the division will continue to be depress the stock as it has today, there is real concern that the $5.2 billion acquisition may not have been the right move for the technology giant.
In other areas of the company, Windows OEM Pro was the major growth area in the increasingly commoditized operating system division, while Office 365 added more than 1 million subscribers in the three-month period, totalling 5.6 million. While the subscription service is a bright spot in Microsoft’s software division, the numbers are unimpressive considering the release of Office for iPad in the quarter, which was expected to bolster demand for the service. Bing search advertising revenue also rose 40% in the quarter, another positive aspect of the company’s online presence.