Microsoft reported revenues of $20.5 billion in the last quarter, a decrease of 5.5 percent compared to the same period last year, primarily due to a decline in personal computer (PC) sales.
According to Microsoft’s report released on Thursday, net income for the first quarter of this year was $3.7 billion, nearly 25 percent lower than in the same period last year.
The revenues of the world’s largest software manufacturer are under pressure due to falling PC sales, which has diminished demand for the Windows operating system.
According to data from the analytical firm IDC, global PC sales fell by 11.5 percent in the first quarter of this year compared to the same period last year.
Microsoft’s revenues in the segment that includes the Windows system increased by 1 percent year-over-year to $6.5 billion in the last quarter. However, operating income fell by 7 percent.
The revenues of this software giant from cloud business, which includes products such as Windows Server and the Azure platform, rose by 3.3 percent compared to the same quarter last year, reaching $6.1 billion. However, operating income in this segment fell by 14 percent.
This is an area where Microsoft is investing heavily, as the cloud services market is expected to grow rapidly in the future.
According to a study by Research and Markets, the global cloud industry reached a value of $19 billion last year, and it could be worth $65 billion by 2020.
As Microsoft’s business results were weaker than analysts expected, the company’s stock price fell by more than 4 percent on Wall Street on Thursday.
