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SEGMENT REVENUE AND GROSS MARGIN |
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(In millions)(Unaudited) |
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Three Months Ended June 30, |
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Twelve Months Ended June 30, |
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2014 |
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2013 |
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2014 |
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2013 |
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Revenue |
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|
|
|
|
|
Devices and Consumer Licensing |
$ 4,694 |
|
$ 4,288 |
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$ 18,803 |
|
$19,021 |
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Computing and Gaming Hardware |
1,441 |
|
1,167 |
|
9,628 |
|
6,461 |
|
Phone Hardware |
1,985 |
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0 |
|
1,985 |
|
0 |
|
Devices and Consumer Other |
1,880 |
|
1,563 |
|
7,258 |
|
6,618 |
|
Commercial Licensing |
11,222 |
|
10,627 |
|
42,027 |
|
39,686 |
|
Commercial Other |
2,262 |
|
1,574 |
|
7,547 |
|
5,660 |
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Corporate and Other |
(102) |
|
677 |
|
(415) |
|
403 |
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Total Revenue |
$ 23,382 |
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$19,896 |
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$ 86,833 |
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$77,849 |
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Gross Margin |
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Devices and Consumer Licensing |
$ 4,407 |
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$ 3,881 |
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$ 17,216 |
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$17,044 |
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Computing and Gaming Hardware |
18 |
|
(647) |
|
893 |
|
956 |
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Phone Hardware |
54 |
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0 |
|
54 |
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0 |
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Devices and Consumer Other |
446 |
|
368 |
|
1,770 |
|
2,046 |
|
Commercial Licensing |
10,296 |
|
9,667 |
|
38,604 |
|
36,261 |
|
Commercial Other |
691 |
|
336 |
|
1,856 |
|
921 |
|
Corporate and Other |
(125) |
|
689 |
|
(494) |
|
372 |
|
Total gross margin |
$ 15,787 |
|
$14,294 |
|
$ 59,899 |
|
$57,600 |
MICROSOFT CORPORATION
FOURTH QUARTER FINANCIAL HIGHLIGHTS
All growth comparisons relate to the corresponding period in the last fiscal year. Please refer to the reconciliation of our GAAP and Non-GAAP financial results, and the Noted Items table provided above for additional information.
SUMMARY
Nokia Devices and Services Acquisition
On April 25, 2014, we acquired substantially all of Nokia’s Devices and Services business (the acquired assets and operations are hereafter referred to as “NDS”). Beginning on that date, we reported the revenue and cost of revenue from NDS, including amortization of intangible assets, in the new Phone Hardware segment. For the fourth quarter, the results of NDS impacted revenue, gross margin, operating income, and diluted EPS by $1.99 billion, $54 million, $(692) million, and $(0.08), respectively.
Operating Summary
Revenue was $23.38 billion, up 18% year-over-year. Non-GAAP revenue grew 22%. As described in the Noted Items table, prior year revenue was decreased by $38 million and current year revenue was increased by $382 million. Additionally, NDS contributed $1.99 billion to current year revenue.
Gross margin was $15.79 billion, up 10% year-over-year. Non-GAAP gross margin grew 17%. As described in the Noted Items table, prior year gross margin was decreased by $900 million and current year gross margin was increased by $382 million. Additionally, NDS contributed $54 million to current year gross margin.
Operating income was $6.48 billion, up 7% year-over-year. Non-GAAP operating income grew 23%. As described in the Noted Items table, prior year operating income was decreased by $900 million and current year operating income was increased by $255 million. Additionally, NDS contributed $(692) million to current year operating income.
Diluted EPS was $0.55, down 7% year-over-year. Non-GAAP diluted EPS grew 6%. As described in the Noted Items table, prior year diluted EPS was decreased by $0.07 and current year diluted EPS was decreased by $0.03. Additionally, NDS contributed $(0.08) to current year diluted EPS.
NNID: FrequentFlyer54
