Microsoft posts record loss as it writes down Nokia

Tue Jul 21, 2015 6:57pm EDT
 
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By Devika Krishna Kumar

(Reuters) - Microsoft Corp (MSFT.O: Quote) reported a $3.2 billion quarterly net loss, its biggest ever, as the company wrote down its Nokia phone business and demand fell for its Windows operating system.

The company took a charge of $7.5 billion in the fourth quarter related to the restructuring of its Nokia handset business, which it bought last year. (bit.ly/1Ovkhp3)

Microsoft's shares fell 4 percent to $45.38 in extended trading on Tuesday.

Under Chief Executive Satya Nadella, the company has been shifting its focus to software and cloud services as demand for its once-popular Windows operating system slows.

Sales of Windows to computer manufacturers to install on new PCs fell 22 percent in the quarter. The company is scheduled to roll out Windows 10 on July 29, a much-awaited launch after a lackluster response to Windows 8.

Microsoft wants to generate revenue by building search and gaming into the Windows 10 interface, Chief Financial Officer Amy Hood said in April.

Bing, the company's online search engine, will be profitable in the year ending June 2016, Hood said on Tuesday.

Sales of Windows to businesses fell 21 percent from the year-earlier quarter, when demand for the operating system had surged after Microsoft discontinued support for Windows XP.   Continued...

 
An advertisement for Microsoft is seen over 42nd Street in Manhattan, New York, July 15, 2015.  REUTERS/Rickey Rogers