The Surface RT hits Microsoft's fiscal Q4 2013 results-- the company takes a $900 million "inventory adjustment" charge after it slashes the prices of the still unsuccessful tablet.
Microsoft recently cut Surface RT prices by as much as -30%, perhaps a sign of faltering sales for the ARM-powered Microsoft tablet.
Further affecting company results are $540m worth of "previously deferred revenue related to the Windows Upgrade Offer" and $733m in European Commission fine.
Microsoft Q4 revenues total $19.9 billion with -24% Y-o-Y decline, down from analyst expectations of $20.7bn. Operating income totals $6.07bn, while net income amounts to $4.97bn.
“While our Q4 results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter," CEO Steve Ballmer comments. CFO Amy Hood is more direct, saying “I want to be very clear-- We know we have to do better, particularly on mobile devices.”
As for fiscal 2013 Microsoft revenues total $77.85bn while operating income reaches $26.76bn. The Business division sees 9% Y-o-Y growth in Q4 and 3% in the full year, and Servers & Tools grows 9% in Q4 and 2013.
Windows revenue is up 6% in Q4 and 5% in the year, while Entertainment & Division sees 8% growth in Q4 and a 6% rise for 2013.
The results follow a major reshuffle in Microsoft management, an attempt to make the lumbering (90000 employees!) conglomerate more agile. We will learn if Ballmer and company managed to do so come the next round of Microsoft results.
