Microsoft's Profits Fall On Higher Costs

By Tess Stynes 

Microsoft Corp. on Monday said its earnings fell more than 10% during the quarter ended December on costs related to its streamlining effort and its integration of the mobile phone business acquired from Nokia last year.

Shares fell about 2% in recent after-hours trading. Through Monday's close, the stock has risen nearly 28% over the past 12 months,

The company's bottom line has been hit in recent quarters by expenses related to job cuts started last summer and the Nokia mobile phone business that it acquired in April.

The July plans included up to 18,000 jobs cuts, or about 14% of its workforce at the time, largely to clear up overlap with the Nokia businesses.

For the period ended Dec. 31, Microsoft reported a profit of $5.86 billion, or 71 cents a share, down from $6.56 billion, or 78 cents a share, a year earlier. Microsoft said its per-share earnings in the latest quarter were hurt by 2 cents from costs related to integration and restructuring.

Revenue increased to $26.47 billion from $24.52 billion. Microsoft, which makes most of its profit on software sales to companies, reported that its commercial revenue grew 5% to $13.3 billion.

Analysts polled by Thomson Reuters expected per-share profit of 71 cents and revenue of $26.29 billion.

Write to Tess Stynes at [e-mail]

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