While Microsoft was announcing reduced profits in its latest global earnings report recently, locally the company has recorded an increased profit in its latest financial report.
The company reported a net profit for the year ending June 30, 2014 of $9.3 million in New Zealand, on total operating revenue of $86.8 million up from $8.0 million on $78.5 million total operating revenue in FY2013.
At a time when many international companies have been under the spotlight over how much tax they pay, Microsoft stumped up $4.6 million in income tax expense.
Meanwhile globally, the company announced revenue of US$26.5 billion for the quarter ending December 31, 2014, an increase of 8% on the same quarter last financial year.
The company’s profits, however, fell by 10.6% to US$5.9 billion.
The Q2 2015 results include $243 million in integration and restructuring costs, courtesy of the company’s restructuring plan announced in July 2014, and the ongoing integration of the Nokia Devices and Services business.
The Nokia business saw Microsoft’s phone hardware revenue clock $2.3 billion, with 10.5 million Lumia units sold.
Surface revenue meanwhile was up 24% to $1.1 billion, driven by Surface Pro 3 and accessories.
Office 365 Home and Personal subscribers increased to more than 9.2 million globally, up 30% sequentially over Q1.
Microsoft says its devices and consumer business accounts for $12.9 billion of the company’s revenue, and grew 8%.
On the commercial side the company says cloud revenue grew 114% driven by Office 365, Azure and Dynamics CRM Online, and is now on an annualized revenue run rate of $5.5 billion.
Office commercial products and services, however, declined 1% with the transition to Office 365 and declines in commercial PCs following the XP refresh cycle.
Server products and services revenue grew 9% with double-digit growth of SQL Server and System Centre, while Windows volume licensing revenue increased 3% with annuity revenue growth partially offset by declining transactional revenue.
For Microsoft’s fiscal year 2014 – the period for which the local figures have just been disclosed - the company’s revenue, gross margin, operating income, were $86.83 billion, $59.90 billion, $27.76 billion, respectively.