Microsoft Corp Q1 Revenue Up 25%; Profit Falls On Restructuring Charge

Microsoft Corp.

posted revenue growth Thursday of 25 percent for its fiscal first-quarter, even as profits fell more than 13 percent on a restructuring charge. Microsoft gained nearly 3 percent recently in the extended session, to $46.28 a share. The Redmond, Wash., company beat expectations for both its top and bottom lines, and Chief Financial Officer Amy Hood said continued cloud momentum and "meaningful progress across our device businesses" helped results. Devices and consumer revenue grew 47 percent to $10.96 billion, including phone hardware revenue of $2.6 billion, while commercial revenue grew 10 percent to $12.28 billion. Cash flow from operations grew 1.8 percent to $8.35 billion, from $8.21 billion a year earlier. Net income fell to $4.54 billion or $0.54 cents a share, from year earlier profit of $5.24 billion, or $0.62 cents a share. Revenue increased to $23.2 billion from $18.53 billion. Wall Street expected $0.49 cents a share, on revenue of $22.02 billion. Net income for the recent period included a restructuring charge of $1.14 billion for employee severance expenses and the write-down of certain assets. The company planned to provide an earnings outlook during a conference call with analysts.