Microsoft unveiled its earnings for Q4 2013 on Friday, and the results left some investors uneasy. What matters on Wall Street, however, isn’t the same as what matters on Main Street, so small and medium businesses need to analyze the news through a different lens.
Microsoft actually had a decent quarter to cap off a very successful fiscal 2013. Revenue for Q4 was up 10 percent over Q4 2012, and profit was almost $5 billion (USD) compared to a $492 million loss in the same quarter last year. Revenue was also up for the year, and Microsoft profit was nearly 30 percent higher than 2012.
Despite declining PC sales, adoption of Windows 8 is on pace with that of its predecessor. There has been some backlash over the dramatic redesign of Windows 8, and Microsoft’s attempt to convert the OS to a touch-based interface, but most of the major complaints are addressed with the Windows 8.1 update, which will be officially available later this year.
Another silver lining from the Microsoft earnings report is the fact that the Business Division and Server and Tools units both reported solid increases in both revenue and profit over the previous year. Office 365 is a cost-effective way for SMBs to acquire Microsoft Office, along with hosted Exchange and SharePoint, and it has quickly grown into a $1.5 billion source of revenue for Microsoft.
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Source: FULL ARTICLE at PCWorld
