Microsoft returns to profit one year after big loss

 20 Jul 2016 - 0:00

Microsoft returns to profit one year after big loss
Microsoft CEO Satya Nadella delivers the keynote address during the 2016 Microsoft Build Developer Conference on March 30, 2016 in San Francisco. AFP / Justin Sullivan


San Francisco:  Microsoft said Tuesday it posted a profit of $3.1 billion in the just-ended quarter, swinging into the black a year after hefty charges from writing off mobile phone assets.

"This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations," said chief executive Satya Nadella.

The profit in the tech giant's fourth fiscal quarter was nearly identical to the loss from a year earlier, when it took charges of more than $7 billion to reflect the lower value of the Nokia mobile phone division it had acquired.

Revenue dipped to $20.6 billion from $22.2 billion in the same period a year ago.

Overall, the results were better than most forecasts and sparked an after-hours gain of more than three percent for the company, which is seeking to regain its leadership in the tech sector.

Under Nadella, Microsoft is trying to reduce its dependence on software sales amid declining use of personal computers, and boost its role in services and cloud computing, with some contributions from its Xbox gaming platform and Surface tablets.

Nadella said in a statement that "the Microsoft Cloud is seeing significant customer momentum and we're well positioned to reach new opportunities in the year ahead."

Microsoft closed out its fiscal year with a 38 percent rise in profit to $16.8 billion.