Home / News / Mobile Phone News / Microsoft just announced its highest net loss ever

Microsoft just announced its highest net loss ever

by

satya nadella
Microsoft CEO Satya Nadella

Microsoft has just posted its biggest quarterly net loss in the company's entire operating history.

The net loss, which is measured over the four quarter period that ended on June 30, totalled $3.2 billion.

The company also reported that sales had dropped 5.1 per cent to $22.2 billion, revealing the latest figures in a performance statement released yesterday.

It’s worth noting that the company’s quarter was seriously hurt by a $7.6 billion write-down related to Nokia assets.

With the write-down excluded, profit actually amounted to $0.62 per share.

Microsoft announced the prospective loss earlier this month, revealing it was writing off the huge figure related to “the acquisition of the Nokia Devices and Services” business, a deal that was completed just last year.

The company also revealed it was making 7,800 employees redundant in an effort to “restructure” its ailing smartphone business.

The news came just weeks after the announcement that former Nokia CEO Stephen Elop was leaving Microsoft as Executive VP of Devices and Services.

Related: The Windows 10 features you need to know

Microsoft is making serious changes to its smartphone business ahead of the launch of Windows 10 for Mobile, which is set for an autumn release.

In a statement, Microsoft CEO Satya Nadella said: “The big shift we’re making about phones is not to think about phones on a standalone basis.”

He added: “We are galvanised around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution.”

Microsoft was recently reported to be planning a release cycle of 6 smartphones per year once the Windows 10 for Mobile platform goes live.

It’s not yet clear what the phones will look like, but a report from earlier today suggested the Microsoft Lumia 950 and 950 XL will be the first smartphones to arrive packing Windows 10 out of the box.

Microsoft is due to launch Windows 10 for desktop starting July 29.

If you want to help pad out Microsoft's coffers a little, check out our Microsoft Surface 3 video review below:

comments powered by Disqus