MICROSOFT

Company has performed better than expected driven by online services

Microsoft had a better than expected quarterly result in the third fiscal quarter, driven by strong demand for the communication tool Teams and video game services on the Xbox platform.
However, for the fourth fiscal quarter, Microsoft gave forecasts below Wall Street expectations, saying the LinkedIn social network and software sales for small businesses would struggle.
"Microsoft is not immune to what is going on in the world economy," Chief Executive Satya Nadella said in a conference call with investors.
The company said last quarter's results also benefited from sales of the Windows operating system and Surface computers, in the face of a move to upgrade consumers to live confined in the expectation that the coronavirus epidemic will fade.
Microsoft cited engagement with the Xbox Live service that hit a historic record, with 19 million active users.
"The biggest loss of opportunity was with Surface, where demand was huge, but sales channels were out of stock, and supply chain problems reduced production," said Patrick Moorhead of Moor Insights & Strategy. "I believe the company could have easily sold 15% to 20% more if it had a product available."
Microsoft also gained momentum with demand for the Teams collaboration software, which Nadella said reached a base of 75 million users. The executive said that the demand for the product made the company limit the use by new customers of cloud computing services and to prioritize customers from government and health areas.
Microsoft's revenue for the third fiscal quarter ended March 31 rose 15% from a year earlier to $ 35 billion, exceeding average analyst expectations of 33.7 billion, according to data from Refinitiv.
Net income reached $ 10.75 billion, or $ 1.4 per share, up from $ 8.81 billion, or $ 1.14 per share a year earlier. 

By Ayanti Bera/mundopone