Microsoft released its 3rd quarter latest financial results for fiscal year 2017.The company reported net income of $6.0 billion non-GAAP ($4.7 billion GAAP) for the three months ending September 30, 2016, on revenue of $22.3 billion non-GAAP ($20.5 billion GAAP). Diluted earnings per share stood at $0.76 non-GAAP ($0.60 GAAP).
The company’s increasing focus on business and enterpriese products and services continues to pay dividends with furthur growth reported. The Revenue from company’s Productivity and Business Processes division rose to $6.7 billion up by 6%, Office commercial products and cloud services revenue increased to 5% due to the remarkable increase of commercial revenue in Office 365 of 51%.
Microsoft’s performance in its cloud operations was impressive with an 8% rise in its ‘Intelligent Cloud’ business, with revenue now standing at $6.4 billion.
However Microsoft’s phone business continued to decline with the revenue going down by 72% from the last quarter revenue which stood at 71%.However Microsoft said that Windows OEM revenue was “flat year-over-year, which was slightly ahead of the PC market,
Apart from the Phone revenue the company also recorded a surprising fall in gaming revenue, which declined by 5%. The company said that it was driven by lower Xbox console revenue and offset by higher Xbox software and services revenue”.
The results for Microsoft’s Surface were actually quite good, with revenue up to $926 million, which is down slightly from last quarter but an improvement by 38% from the previous year’s showing. As expected, the Surface Pro 4 and Surface Book have resulted in the increase of Surface Revenue.
The company is planning to release more Surface device along with the rumored Surface Phone. Lets hope that the Surface Phone might help in increasing the company’s phone market share resulting in increase of revenue from the phone business.