Microsoft Surface, Office 365 Shine

On Monday, Microsoft revealed the results of the holiday quarter ending December 31st, 2014 with successful Surface figures.

Microsoft has published its Q2 fiscal 2015 earnings report, with a net profit of $5.8 billion, or about 71 cents per share, on $26.5 billion in revenue. Year-on-year, Microsoft's revenue has increased 8 percent, but its net profits have dropped by 10 percent. Microsoft's Devices and Consumer revenue grew 8 percent to $12.9 billion, bolstered by a 24 percent rise in Surface tablet and accessory sales. Surface revenue for the quarter exceeded $1 billion. Also in devices, Microsoft saw 10.5 million Lumia phones sold and 6.6 million Xbox consoles sold in the holiday period. Phone hardware brought in $2.3 billion in revenue. Figures for Surface units sold were not revealed in the earnings report, nor was the revenue associated with Xbox console sales. Commercial revenue grew 5 percent to $13.3 billion, driven by Office 365, Azure, and Dynamics CRM Online. Commercial cloud revenue is slated to have an annualized revenue run rate of $5.5 billion.

"Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership," said Microsoft CEO Satya Nadella. "We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to our customers." Windows definitely needs the boost; Windows OEM Pro and non-Pro revenues both declined 13 percent. The second Technical Preview for Windows 10 made its debut last week, ahead of the earnings report. The Preview builds have been met with decent reviews, but it is still early. Windows 10 is expected to hit shelves in the second half of 2015.

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