Microsoft released their earnings report for the first quarter of their new fiscal year. Their fiscal year, which ran from July to September, was important for a lot of reasons. The results were both underwhelming, but a good sign at the same time. Overall revenue grew by 25% to $23.20 billion when compared to last year. Of that, the largest boost from within that the company saw was from the Devices and Consumer segments. Revenue soared to $10.96 billion which is a 47% year-on-year growth.
Interestingly enough, the ‘mobile first, cloud first’ mantra of their new CEO, Satya Nadella, seems to be paying dividends, if you look at their results. However, this all comes after Microsoft acquired Nokia, and also could be attributed to the fact that the company had what many called a ‘new direction’ in terms of their leadership.
The Surface lineup pulled in $908 million in revenues during this quarter – that doubled the amount posted from the previous quarter. The company said that the results were boosted by the Surface Pro 3, but a closer look at the results shows that the company only improved modestly with these sales results.
The smartphone lineup improved, but improved slowly, and steadily. Sales were recorded at $9.3 million for Lumia devices, but that was slightly less than what the company expected. However, the company now has a second quarter coming up that they can begin to bank on sales from the holiday season to ease the slow growth pains they’ve felt so far this calendar year.
Overall, this comes after the company acquired Nokia’s device business, and began the process of entirely rebranding what the Lumia is, against what it once was with Nokia. It also needs to space itself from the Nokia name, given the fact that Nokia is now doing as well as its doing as a standalone business focusing on things other than device development.
While Microsoft’s first quarter results might not have been the most exciting thing to see, many could say that it is a good step in the right direction, and that better things will be coming in the future as the company focuses their work on rebranding the Microsoft image, as a whole.