Microsoft Changes How It Reports Its Financial Results
September 28 2015 - 6:10PM
Dow Jones News
Microsoft Corp. said it would begin reporting its financial
results based on three operating divisions, as the software maker
aims to emphasize its mobile and cloud businesses.
The changes begin with the results for the current quarter—the
first of Microsoft's new fiscal year—which the Redmond, Wash.-based
company plans to report Oct. 22.
The new format will break out results from its commercial cloud
businesses, an area where Microsoft and other tech firms have
turned their focus amid waning PC demand. The change also will
unite results from its Office and Office 365 for commercial and
consumer customers.
In a news release Monday, Microsoft said the new operating
segments include "Productivity and Business Processes," which will
include Office products as well as Dynamics and Dynamics CRM
Online.
An "Intelligent Cloud" segment will include public, private and
hybrid server products and services, such as Windows Server, Azure
and Enterprise Services.
The third operating segment, called "More Personal Computing,"
will include results from licensing of the Windows operating
system, devices such as mobile phones and Surface tablets, game
products including Xbox consoles, and its Bing search business.
Previously, the company's cloud businesses were included in
Microsoft's commercial segment, which also included Office and
Windows business software as well as server products and services.
Microsoft's former devices and consumer segment included Office
consumer subscribers, Surface tablets and Xbox game consoles and
related software.
During July, Microsoft reported a loss of $3.2 billion in its
fiscal fourth quarter, a departure for a company that typically
generates reliable profit. The loss resulted from $8.4 billion in
previously announced charges and layoffs in the company's
struggling mobile-phone operation, which Microsoft acquired from
Nokia Corp.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 28, 2015 17:55 ET (21:55 GMT)
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