Microsoft reported quarterly sales and profit that fell short of analysts’ projections, held back by the stronger U.S. dollar and weaker demand for cloud-computing services, personal-computer software and advertising on its online properties.
Microsoft Corp. reported quarterly sales and profit that fell short of analysts’ projections, held back by the stronger dollar and weaker demand for cloud-computing services, personal-computer software and advertising on its online properties.
“Post-Memorial Day, things started getting slower and you started hearing more cautious buying behavior and longer sales cycles,” Wood said. Those headwinds may impact the company’s forecast even more than the results from the recent quarter, he said, and currency-exchange rates have gotten even less favorable since Microsoft cut projections last month.
Excluding the impact of currency, Azure growth was 1 per cent lower than forecast in April, Chief Financial Officer Amy Hood said in an interview. Still, the company signed a record number of Azure contracts worth more than US$100 million and US$1 billion, she said. Microsoft also recorded US$113 million in severance payments in the recent period. Earlier this month, Microsoft said it cut less than 1 per cent of its 180,000-person workforce, affecting groups such as consulting and customer solutions, but said it planned to finish the current fiscal year with increased headcount. The company has also eliminated many open jobs and slowed hiring including in units that make Azure, Windows, Office and security software.
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