WASHINGTON, April 25 — Microsoft said profits climbed in the past quarter on its cloud and business services as the US technology giant saw its market value close in on the trillion-US dollar (RM4.125 trillion) mark.
Profits in the quarter to March 31 rose 19 per cent to US$8.8 billion on revenues of US$30.8 billion, an increase of 14 per cent from the same period a year earlier.
Microsoft shares gained some three per cent in after-hours trade, pushing it closer to US$1 trillion in value.
It ended the session yesterday with a market valuation of some US$960 million, just behind Apple but ahead of Amazon.
In the fiscal third quarter, Microsoft showed its reliance on cloud computing and other business services which now drive its earnings, in contrast to its earlier days when it focused on consumer PC software.
“Leading organisations of every size in every industry trust the Microsoft cloud,” chief executive Satya Nadella said in a statement.
Commercial cloud revenue rose 41 per cent from a year ago to US$9.6 billion, which now makes up nearly a third of sales, Microsoft said.
Some US$10.2 billion in revenue came from the "productivity and business services" unit which includes its Office software suite for both consumers and enterprises, and the LinkedIn professional social network.
The “more personal computing” unit which includes its Windows software, Surface devices and gaming operations generated US$10.6 billion in the quarter. — AFP
