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Microsoft reports Commercial segment growth in third quarter results

by Jason Gumpert
Editor, MSDynamicsWorld.com

Microsoft announced revenue of $20.4 billion, net income of $5.66 billion, and $0.68 per share for the third quarter of its 2014 fiscal year. Revenue was virtually unchanged from the same quarter last year, while earnings per share fell 6% from $6.05 billion.

The latest quarter's profit beat Wall Street's average estimate of 63 cents per share. Deferred revenue related to Windows upgrade and Office Deferral programs reduced the company's results, the company reported.  

The company's Commercial segment now includes all Microsoft Dynamics business solutions. Commercial revenue grew 7% or $797 million to $12.2 billion and margins rose 6% to $9.9 billion compared to the previous year's quarter.  Microsoft attributed that revenue growth to Cloud Services and on-premise licensing. The sub-segment that Microsoft calls "Commercial Other" and which includes Dynamics CRM Online saw 31% revenue growth in the quarter.  

Microsoft Corp earnings Q3 2014 Commercial Segments 

Microsoft CEO Satya Nadella framed the results as a demonstration of "the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world," according to a statement from the company.

About Jason Gumpert

As the editor of MSDynamicsWorld.com, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at jgumpert@msdynamicsworld.com.

Prior to co-founding MSDynamicsWorld.com, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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