Microsoft loves the cloud but takes a hit on taxes
That figure, which includes deferred revenue, is in line with the average estimate of analysts surveyed by Thomson Reuters. Earnings, however, were 47 cents a share, compared with an average estimate of 63 cents. The company said it made had a "catch-up" income tax expense during the period. After taking out certain costs such as employee stock compensation, profit was 62 cents a share. Analysts had expected 64 cents a share.
Sales were buffered by CEO Satya Nadella's emphasis on the cloud. Excluding the impact of foreign exchange rates on sales, Microsoft's "Intelligent Cloud" business rose 8 percent to \\$6.1 billion, in the March quarter.
Earlier this week, Intel said it would cut 11 percent of its workforce as it moves into the cloud computing market. IBM's reported the 16th quarter in a row of falling sales -- and its worst quarterly results in 14 years. And even Netflix missed analysts' revenue estimates after expanding into almost every country in the world.
Shares fell nearly 5 percent in after-hours trading.
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