The shares of Microsoft Corporation (NASDAQ:MSFT) stumbled down nearly 5 percent after the tech giant announced its second quarter 2015 financial results. One of the primary reasons for the drop in profit was slower computer sales and strong U.S Dollar performance. The shares of the tech giant were trading at $44.80 in the pre-market trades.
The tech giant is under pressure for the last three years because of lowering PC sales, although recent months have shown some improvements. A strong U.S. dollar also affected its quarterly earnings primarily because the tech giant makes a majority of its revenue from foreign markets.
Daniel Ives, FBR Capital Markets, said, “While currency is a headwind for Microsoft and other large international companies, we would characterize the headline numbers as good enough, although some bulls may have been hoping for a bigger beat.”
In its second quarter 2015 financial results, Microsoft Corporation (NASDAQ:MSFT) announced net revenue of $26.5 billion along with gross margin of $16.3 billion. Satya Nadella, CEO of Microsoft Corp, said,
“Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership. We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to our customers.”
It is important to consider that the commercial revenue of the company grew over 5 percent to $13.3 billion with tremendous growth in commercial cloud revenue having revenue growth of 114 percent. Some of the primary products leading cloud unit of Microsoft Corporation (NASDAQ:MSFT) include Office 365, Dynamic CRM online, and Azure.
The chief financial officer of Microsoft Corp, Amy Wood, said that the only downfall was in the commercial licensing segment with some currency exchange costs in Japan and China. The net profit of the company was $5.86 billion at the second end of its second quarter 2015.
This article has been written by Prakash Pandey.