Microsoft Q4 2013 results report $900 million charge for Surface RT
Microsoft Corp. recently announced its Q4 2013 results in which the company has reported $900 million charge related to Surface RT inventory adjustments. The Redmond-based software giant last year stepped into the hardware industry with its Surface tablets lineup. Certainly the step of being in the hardware industry with the Surface lineup shows a negative impact on the overall results. But on the other side, being an experience player in the market, Microsoft still bagged with $6.07 billion operating income. The company has also reported $4.97 billion net income.
Microsoft step of entering in the tablets market was taken along with its Windows 8 and Windows RT platform. While other manufacturers were not seemingly interested in investing huge capital on Windows RT roadmap, the software giant solely started supplying the Windows RT platform in its Surface RT tablet. And now the result is showing a fall in demand of Microsoft Surface RT over other Android tablets and Apple iPad. However, the company has not yet officially declared sales figure of Surface tablets but some market analysts are predicting disappointed results. In order to combat low demand, Microsoft has recently cut the price of Surface RT tablet by about 30 percent. While the tablet was initially launched in the US market at $499, currently it is available in the market with the price of $349.
Being a sole big player in the software industry, Microsoft earned a profit of $4.97 billion in the fourth quarter of 2013. The company has also reported a quarterly revenue of $19.90 billion for the same quarter. On the part of Microsoft fiscal results for the year 2013, it has earned $77.85 billion revenue with a profit of $26.76 billion.
Commenting on the results, Steve Ballmer, chief executive officer at Microsoft said;
“We are working hard to deliver compelling new devices and high value experiences from Microsoft and our partners in the coming months, including new Windows 8.1 tablets and PCs. Our new products and the strategic realignment we announced last week position us well for long-term success, as we focus our energy and resources on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value the most.”
Microsoft Business Division revenue grew 14 percent for the fourth quarter of 2013 and the revenue grew by 3 percent for the full year. The revenue from Windows Division of the Redmond company grew by 6 percent for the fourth quarter and 5 percent for the whole year.