Microsoft Corporation Reports Unaudited Earnings Results for the Second Quarter and Six Months Ended December 31, 2017
January 31, 2018 at 09:06 pm
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Microsoft Corporation reported unaudited earnings results for the second quarter and six months ended December 31, 2017. For the quarter, total revenue was $28,918 million against $25,826 million a year ago. Operating income was $8,679 million against $7,905 million a year ago. Income before income taxes was $9,169 million against $8,022 million a year ago. Net loss was $6,302 million against income of $6,267 million a year ago. Loss per diluted share was $0.82 against earnings of $0.80 a year ago. Net cash from operations was $7,875 million against $6,293 million a year ago. Additions to property and equipment were $2,586 million against $1,988 million a year ago. Adjusted (non-GAAP) revenue was $28,918 million. Adjusted (non-GAAP) operating income was $8,679 million. Adjusted (non-GAAP) net income was $7,498 million. Adjusted (non-GAAP) diluted earnings per share were $0.96. GAAP results include a net charge of $13.8 billion related to TCJA, which is excluded from non-GAAP results.
For six months, total revenue was $53,456 million against $47,754 million a year ago. Operating income was $16,387 million against $14,620 million a year ago. Income before income taxes was $17,153 million against $14,849 million a year ago. Net income was $274 million against $11,934 million a year ago. Earnings per basic and diluted share were $0.04 against $1.52 per diluted share a year ago. Net cash from operations was $20,315 million against $17,842 million a year ago. Additions to property and equipment were $4,718 million against $4,151 million a year ago.
Microsoft Corporation is the world's leader in the design, development and marketing of operating systems and software programs for PC's and servers. The group also builds and sells computer equipment. Net sales break down by activity as follows:
- sale of operating systems and application development tools (47.9%): primarily for servers (Azure, SQL Server, Windows Server, Visual Studio, System Center, GitHub, etc.) and (Windows);
- development of cloud-based software applications (23%): programs for productivity (Microsoft 365; Word, Excel, PowerPoint, Outlook, OneNote, Publisher and Access), integrated management and customer relationship management (Dynamics 365), online file sharing and management (OneDrive), and unified and collaborative communications (Skype and Microsoft Teams);
- sale of video gaming hardware and software (7.3%) : mainly Xbox;
- enterprise services (3.6%);
- sale of computers, tablets and accessories (2.6%);
- other (15.6%).
The United States accounts for 50.4% of net sales.