Nokia's decline in performance drag Microsoft

Microsoft on the 23rd announced fourth quarter fiscal 2014 earnings, the performance of its acquisition of Nokia fell and affect Microsoft's performance. Microsoft also announced a concrete plan for massive layoffs.

In April, Microsoft's Nokia handset business, which was acquired for $ 7 billion, brought about a $ 700 million loss to Microsoft. However, Microsoft's other businesses performed well, with total revenue up 18% in the fourth quarter. Windows, Office office software, databases and other products have increased by 10%. Microsoft's profits from these businesses also increased. Microsoft's cloud business hit an annual revenue of 4.4 billion U.S. dollars. The company's old businesses such as database software also increased. Microsoft's server software revenue increased 14%. Despite this, Microsoft's net profit dropped from last year's 4.77 billion U.S. dollars to 4.61 billion U.S. dollars this year, a drop of 7%.

At the same time that Microsoft's profit dropped, Lenovo and Intel (34.5, -0.29, -0.83%) all said the PC is recovering. Some analysts said that if Microsoft can sell more smart phones to attract consumers to use the company's software, then the acquisition of Nokia in the long run is a bargain. However, Microsoft did not solve the problem of how to make Nokia profit, nor find a way to adjust for Nokia, Microsoft sold new smart phones is still less than 5% before buying Nokia, resulting in the acquisition strategy seems to have failed.

To offset Nokia's losses, Microsoft announced the largest layoffs ever planned. Microsoft's stock rose to a 14-year high last week.