Microsoft have published their Earnings Release for Q2 2015, or “FY15 Q4” as they call it, revealing that Lumia smartphone sales are up 31% on the same period last year, selling 8.4 million units. This figure is however down 1 million compared to the previous quarter. Meanwhile non-Lumia feature phones (Asha devices etc) declined 36% year on year to 19.4 million units.
“Phone Hardware revenue decreased $748 million or 38%. Gross margin decreased $158 million, due to lower revenue, offset in part by a $590 million or 31% decrease in cost of revenue. Phone Hardware has been included in our consolidated financial results starting on April 25, 2014, the date we acquired NDS.
· Lumia phones revenue declined, driven by a mix shift to lower price point devices. We sold 8.4 million Lumia phones in the fourth quarter compared to 5.8 million in the prior year.
· Non-Lumia phones revenue declined, driven primarily by lower volumes. We sold 19.4 million non-Lumia feature phones in the fourth quarter compared to 30.3 million in the prior year.
· Phone Hardware revenue included an unfavorable foreign currency impact of approximately 4%.”
Other interesting hardware news from the release reveals improved Surface performance, with revenue growing considerably against last year, up 117% to $888 million.
“Microsoft Corp. today announced that revenues for the quarter ended June 30, 2015 were $22.2 billion. Gross margin, operating loss, and loss per share for the quarter were $14.7 billion, $(2.1) billion, and $(0.40) per share, respectively.
These results include the impact of a $7.5 billion non-cash impairment charge related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business, in addition to a restructuring charge of $780 million. There was also a charge of $160 million related to the previously announced integration and restructuring plan. Combined, these items totaled $8.4 billion or a $1.02 per share negative impact. Excluding this impact, operating income and EPS would have been $6.4 billion and $0.62, respectively.”
For the full picture of Microsoft’s financial performance in the last quarter take a look at their Earnings Release HERE