Microsoft releases revenue report, shows mixed results

Microsoft has reported its second fiscal quarter in 2015, revealing huge steps in hardware sales from its Lumia and Surface range alongside further cloud adoption, but lackluster Windows 8 and 8.1 adoption.

Raw numbers for Microsoft this quarter include $26.47 billion (£17.54 billion) in total revenues, $5.86 billion (£3.89 billion) in net profit and $90.5 billion (£59 billion) in available cash.

Net profit is down 10.6 per cent in the second quarter, but Microsoft claims this is due to new investments in cloud and mobile technologies, and a focus on long-term aspirations from the software giant.

The big commercial breakthrough for Microsoft in the second quarter comes from hardware. Microsoft sold 10.5 million Lumia's at an average price of $221 (£146), adding $2.3 billion (£1.52 billion) to the overall revenues.

Surface has also seen quite a rise in the second quarter with $1.1 billion (£730 million) Surface hardware sales. Microsoft sold 6.6 million Xbox units in the second quarter but did not reveal the split in sales between the Xbox 360 and Xbox One.

Office 365 seen 2.2 million new users added in the second quarter, bringing the total number to 9.2 million. Microsoft pushed Office for mobile onto Android, iPad and iPhone, which has had a positive effect on subscribers.

Microsoft noted a 116 per cent increase in commercial cloud revenue and smaller increases in enterprise cloud services. CEO Satya Nadella is confident cloud and mobile first is the way for Microsoft to go.

Windows also failed to grow in the second quarter, with revenues down 13 per cent year-on-year. Windows 8 and 8.1 still control 15 per cent of the market four years after launch, showing the lacklustre performance of Microsoft's platform.

Windows 10 should be the platform everyone was hoping for, thanks to Microsoft's new interest in 'insiders' helping out on the development of Windows 10. The platform will also be free for Windows 7 users (55 per cent of the PC demographic) for one year.