Microsoft FY16 Q4 results: $22.6B in revenue, Surface up 9%, Azure up 102%, Phone down 71%

Microsoft's Q4 2016 financial results are out, and the Redmond giant has reported revenue of $22.6 billion and a net income of $5.5 million, for the three months ending June 30 2016. The operating income stood at $3.1 billion. In the same period a year ago, the company recorded revenues of $22.2 billion, along with operating loss of $2.1 billion.

Not a surprise, revenues from Microsoft's mobile division dropped 71 percent, however the company did not reveal how many units of Lumia it sold in the last quarter. Microsoft has been reducing its smartphone hardware efforts, but continues to support Windows 10 Mobile. The company is expected to launch a high-end Surface phone in 2017.

Microsoft's Surface division recorded revenue growth of 9 percent YoY. The revenue numbers went up to $965 million for the quarter. The growth was due to sales of its Surface Book notebook and Surface Pro tablet. However, Microsoft did not reveal how many units of its Surface devices were sold during the quarter.

Microsoft recorded growth in the Windows division. The non-Pro OEM revenue was up by 27 percent, while the Pro OEM revenue number were up by 2 percent. The 27 percent rise in OEM non-Pro revenue was due to 'higher premium device mix" and that it outpaced the current consumer PC market. The 2 percent rise in OEM Pro revenue was due to "stabilizing commercial PC market.

Volume licencing of Windows was up by 3 percent and Microsoft added that 96 percent of its enterprise customers are piloting Windows 10.

Other highlights from the earnings report include:

Azure revenue grew 102% with Azure compute usage more than doubling year-over-year
Revenues from gaming divisions, including Xbox were down by 9%
Xbox Live monthly active users grew 33% year-over-year to 49 million
Search advertising revenue excluding traffic acquisition costs grew 16% (up 17% in constant currency) with continued benefit from Windows 10 usage

The company also announced results for its full fiscal year 2016 (ended June 30, 2016) with $92.0 billion in non-GAAP revenue and $22.3 billion in net income for the 12 month period.

Source: 1, 2, 3, 4, 5

Kaiser Bey

Kaiser is a tech enthusiast who likes to write, read and talk about tech. He dreams of going to Mars and never come back. We hope that you find his posts on AndroGuider helpful and informative