In new Microsoft Dynamics news, Microsoft has just revealed their third quarter financial results and they are slightly less bad than people were predicting.
While Microsoft’s revenue of $21.73bn for the quarter (which runs March to July) met analysts’ expectations growth fell year-on-year from 8% to 6.5%. This does mean that while revenue is still low in the corporation, it is rising (hitting $21.7bn), even if at a marginally slower rate than it was this time last year.
The continuing decline of software sales
So what is the problem that Microsoft is facing? The answer is its Microsoft software division, which reported a loss of revenue of $3.48bn, a 20.7% decline from a year ago. In other words, people are failing to purchase copies of Microsoft Office, and this is having a massive effect on the rest of the business.
Positive news for hardware
For once, Microsoft reported some positive news about their hardware division. Their Surface Pro 3 was a success, according to the company, with revenue reaching $733m – which, while a significant drop from its sales over the holiday quarter, was 44% higher than the same period like-for-like.
Microsoft Dynamics news
More impressively, Microsoft’s cloud services division reported a doubling of sales, beating all expectations and rising the share point 3.4%. Microsoft is expecting to generate $6.3bn in annual sales.
With Microsoft Dynamics part of the company’s cloud operations business, we can be confident that the growth of Microsoft Dynamics has contributed to the growth of Microsoft over this year. We will continue to bring you all the Microsoft Dynamics news regarding their Q4 performance when they report on it, too.