Microsoft on Tuesday reported the biggest quarterly loss in its history, acknowledging that its acquisition of Nokias handset business had been a major disappointment.
Microsoft said it lost $3.2 billion, or 40 cents a share, in the three months that ended on June 30, largely due to a $7.5 billion reduction in the value of the Nokia business, which Microsoft acquired for $9.4 billion last year. The quarterly loss compared to a profit of $4.6 billion in the period a year earlier.
The Nokia write-down, which had been expected, came on top of weakening quarterly revenue. Microsoft said its revenue totaled $22.2 billion in the recent quarter, 5% lower than in the quarter a year earlier, as the company was hurt by declines in the market for personal computers.
Microsoft’s cell phone business, of which the Nokia acquisition is a major part, has struggled to gain traction in a market dominated by the likes of Apple and Google. Microsoft announced the expected write-down earlier this month, adding that it would also cut as many as 7,800 jobs.
Microsoft has been undertaking a major restructuring under CEO Satya Nadella. The previous CEO, Steve Ballmer, is responsible for the Nokia deal. Read more…