Microsoft Changes How It Reports Its Financial Results

Microsoft Corp. said it would begin reporting its financial results based on three operating divisions, as the software maker aims to emphasize its mobile and cloud businesses.

The changes begin with the results for the current quarter—the first of Microsoft's new fiscal year—which the Redmond, Wash.-based company plans to report Oct. 22.

The new format will break out results from its commercial cloud businesses, an area where Microsoft and other tech firms have turned their focus amid waning PC demand. The change also will unite results from its Office and Office 365 for commercial and consumer customers.

In a news release Monday, Microsoft said the new operating segments include "Productivity and Business Processes," which will include Office products as well as Dynamics and Dynamics CRM Online.

An "Intelligent Cloud" segment will include public, private and hybrid server products and services, such as Windows Server, Azure and Enterprise Services.

The third operating segment, called "More Personal Computing," will include results from licensing of the Windows operating system, devices such as mobile phones and Surface tablets, game products including Xbox consoles, and its Bing search business.

Previously, the company's cloud businesses were included in Microsoft's commercial segment, which also included Office and Windows business software as well as server products and services. Microsoft's former devices and consumer segment included Office consumer subscribers, Surface tablets and Xbox game consoles and related software.

During July, Microsoft reported a loss of $3.2 billion in its fiscal fourth quarter, a departure for a company that typically generates reliable profit. The loss resulted from $8.4 billion in previously announced charges and layoffs in the company's struggling mobile-phone operation, which Microsoft acquired from Nokia Corp.

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(END) Dow Jones Newswires

September 28, 2015 17:55 ET (21:55 GMT)

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