anyweb Posted April 22, 2016 Report post Posted April 22, 2016 Slump in PC sales A continued slump in personal computer sales hurt the company's core Windows business. The firm's net income fell to $3.76bn (£2.6bn) in the third quarter from $4.99bn a year earlier. Its shares were down more than 4% in after hours trading. Cloud revenues rising Revenue in its cloud business, which includes Azure, rose 3.3% to $6.1bn, but operating profits at the division shrank 14%. "We would have liked to have seen 7% to 9% growth," said Dan Morgan, a portfolio manager at Synovus Trust, which holds Microsoft shares, said of cloud revenue. "We're trying to validate this story that Microsoft is truly becoming a cloud company, and they're not going to be relying on the desktop computer." Revenue at the software giant fell to $20.53bn from $21.73bn, lower than the $22.09bn analysts had expected. Continued weakness in the personal computing market hobbled demand for one-time licences for some of its products, the company said. While some analysts are hungry for more growth from Microsoft, other analysts are adopting a wait-and-see approach. "Microsoft's cloud business is gaining sales and momentum in the marketplace, so I am willing to give them the benefit of the doubt on this quarter's missed external expectations," said Matt McIllwain, a venture capitalist at Madrona Venture Group who watches Microsoft closely. read more @ BBC News > http://www.bbc.com/news/business-36108166 Share this post Link to post Share on other sites More sharing options...
