Microsoft earnings beat Street expectations

Associated Press
FILE - In this April 2, 2014 file photo, Microsoft CEO Satya Nadella gestures during the keynote address of the Build Conference in San Francisco. Microsoft reports quarterly earnings on Thursday, April 24, 2014. (AP Photo/Eric Risberg, File)
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FILE - In this April 2, 2014 file photo, Microsoft CEO Satya Nadella gestures during the keynote address of the Build Conference in San Francisco. Microsoft reports quarterly earnings on Thursday, April 24, 2014. (AP Photo/Eric Risberg, File)

REDMOND, Wash. (AP) — Microsoft Corp. posted flat revenue and a decline in net income for the January-March quarter. Revenue gains from its Windows operating system and cloud computing services like Azure were offset by the lack of special upgrade offer revenues from a year ago.

The results beat analyst expectations and the company's shares rose $1.01, or 2.5 percent, to $40.87 in after-hours trading. They had closed up 17 cents at $39.86 in the regular session.

Net income in the quarter through March 31 came to $5.66 billion, or 68 cents per share, down from $6.06 billion, or 72 cents per share, in the same period a year ago.

Revenue was nearly unchanged at $20.40 billion, compared with $20.49 billion a year ago.

Analysts polled by FactSet expected Microsoft to post earnings of 63 cents per share on revenue of $20.39 billion.

Revenue from devices and consumer products rose 12 percent to $8.30 billion as the company sold more Xbox One game consoles and consumers upgraded systems from Windows XP, for which Microsoft ended support earlier this month.

Commercial revenue grew 7 percent to $12.23 billion, as revenue grew from its Office 365 productivity software. Azure revenue more than doubled.

Total revenue gains of $1.7 billion from various segments were offset by a $1.8 billion decline in upgrade offers revenue.

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