Tag Archives: Press Releases

Microsoft announces addition to board and quarterly dividend

REDMOND, Wash. — March 14, 2017 — Microsoft Corp. on Tuesday announced the appointment of Reid Hoffman, co-founder of LinkedIn, to its board of directors effective immediately.

Microsoft also announced its board of directors declared a quarterly dividend of $0.39 per share.  The dividend is payable June 8, 2017, to shareholders of record on May 18, 2017. The ex-dividend date will be May 16, 2017.

Hoffman, 49, has been with Greylock Partners, where he is currently a partner, for the past seven years. He co-founded LinkedIn in 2002, and before that he served as an executive vice president at PayPal. He currently serves on the boards of Edmodo, Convoy and Blockstream. In addition, he serves on several not-for-profit boards, including Wrapp and Kiva.org, and the chair of the West Coast advisory board for QuestBridge.

“We continually evaluate opportunities to bring fresh thinking and new perspectives to our board, and Reid’s appointment reflects that,” said John W. Thompson, Microsoft chairman. “His expertise will be a valuable addition.”

“I’ve long admired Reid’s ability to identify disruptive technologies and the passion we share for how digital platforms can create new opportunity for people around the world,” said Satya Nadella, CEO, Microsoft. “As a board member, Reid’s leadership and strategic perspective will help chart the future of our company as we aim to empower every person and every organization on the planet to achieve more.”

Adding Hoffman to the board increases Microsoft’s board to 12 members.

Hoffman will be appointed to the Regulatory and Public Policy Committee.

In addition to Hoffman, Microsoft’s board of directors consists of John W. Thompson, Microsoft independent chairman; William H. Gates, Microsoft founder and technology advisor; G. Mason Morfit, president, ValueAct Capital; Satya Nadella, chief executive officer, Microsoft; Charles H. Noski, former vice chairman of Bank of America Corp.; Sandra E. Peterson, executive vice president, Group Worldwide Chairman for Johnson & Johnson; Dr. Helmut Panke, former chairman of the board of management at BMW AG; Charles W. Scharf, former chief executive officer of Visa Inc.; John W. Stanton, chairman, Trilogy Equity Partners and Trilogy International Partners; Teri List-Stoll, executive vice president and chief financial officer of Gap Inc.; and Padmasree Warrior, chief development officer of NextEV, and chief executive officer of U.S. for NextEV.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at http://www.microsoft.com/investor.

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Microsoft Teams rolls out to Office 365 customers worldwide

REDMOND, Wash. — March 14, 2017 — Microsoft Corp. on Tuesday announced the general availability of Microsoft Teams, the company’s new chat-based workspace in Office 365. The new tool for team collaboration is now available to Office 365 business customers in 181 markets and 19 languages.

Customers worldwide choose Office 365 to enable collaboration within their organizations. Since Microsoft announced the preview in November, more than 50,000 organizations have started using Microsoft Teams, including Alaska Airlines, Cerner Corporation, ConocoPhillips, Deloitte, Expedia, J.B. Hunt, J. Walter Thompson, Hendrick Motorsports, Sage, Trek Bicycle and Three UK.

“In a world where information is abundant and human time and attention remain scarce, we aspire to help people and groups of people be more productive, wherever they are,” said Satya Nadella, CEO, Microsoft. “Office 365 is the broadest platform and universal toolkit for creation, collaboration and communication. Today we are adding a new tool to Office 365 with Microsoft Teams, a chat-based workspace designed to empower the art of teams.”

Office 365 is designed to meet the unique workstyle of every group with purpose-built, integrated applications: Outlook for enterprise-grade email; SharePoint for intelligent content management; Yammer for networking across the organization; Skype for Business as the backbone for enterprise voice and video; and now, Microsoft Teams.

According to Laurie Koch, vice president of global customer service at Trek Bicycle, Microsoft Teams is already streamlining the company’s work by providing assets and tasks in context: “Across Trek’s global teams, the integrated collection of Office 365 apps serves up a common toolset to collaboratively drive the business forward. We see Microsoft Teams as the project hub of Office 365 where everybody knows where to find the latest documents, notes and tasks, all in line with team conversations for complete context. Teams is quickly becoming a key part of Trek’s get-things-done-fast culture.”

Microsoft has introduced more than 100 new features to Teams since November, including an enhanced meeting experience, with scheduling capabilities; mobile audio calling, with video calling on Android now and coming soon to iOS and Windows Phone; email integration; and new security and compliance capabilities. The company has also delivered new features to make Microsoft Teams more accessible, such as support for screen readers, and high contrast and keyboard-only navigation. Guest access capabilities and deeper integration with Outlook, and a richer developer platform, are targeted for June of this year. For more details on the new features, go to the Office Blog.

About Microsoft Teams

Microsoft Teams brings together people, conversations and content, along with the tools that teams need. It’s integrated with familiar Office applications and is built from the ground up on Office 365 and Microsoft’s global, secured cloud. Microsoft Teams is built on four core promises:

  • Chat for today’s teams. Microsoft Teams provides a modern conversations experience, with threaded, persistent chat to keep everyone engaged. Team conversations can be either private or visible to the entire team, and users can access multiple teams, making it easy to switch between projects.
  • A hub for teamwork. The Office applications and services that teams use every day — Word, Excel, PowerPoint, SharePoint, and OneNote and Power BI— are all built-in, so people have the information and tools they need.
  • Customization for every team. Microsoft Teams offers the ability to customize work spaces with tabs, connectors and bots from third-party partners as well as familiar Microsoft tools like Microsoft Planner and Visual Studio Team Services. More than 150 integrations are available or coming soon, with companies like SAP, Trello, Hipmunk, Growbot and ModuleQ building on the platform.
  • Security teams trust. Microsoft Teams is built on the hyper-scale, enterprise-grade Office 365 cloud, delivering the advanced security and compliance capabilities that customers expect. Teams supports global standards including SOC 1, SOC 2, EU Model Clauses, ISO27001 and HIPAA.

Start using Teams today

Organizations interested in the new chat-based workspace can start using Teams today. More information on the philosophy behind Microsoft Teams and how it works can be found at the Office Blog, the Microsoft Mechanics video and by joining the Ask Us Anything session on the Microsoft Tech Community next week.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

 

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Steelcase and Microsoft announce development of technology-enabled spaces designed to boost creative work

GRAND RAPIDS, Mich. and REDMOND, Wash. – March 6, 2017 – Steelcase and Microsoft Corp. have joined forces to explore the future of work, developing a range of technology- enabled spaces designed to help organizations foster creative thinking and better collaboration. These spaces seamlessly integrate the best of Microsoft Surface devices with Steelcase architecture and furniture. Today the companies unveiled five new “Creative Spaces” showcasing how Steelcase and Microsoft can help organizations unlock creativity for every employee.

Additionally, Steelcase and Microsoft announced:

  • That Microsoft is expanding its partner network into the world of design by bringing in select Steelcase dealers as authorized Surface Hub resellers.
  • Steelcase and Microsoft are working together to develop technology-enabled workplace solutions built on Microsoft Azure IoT technology.

“The problems people face at work today are much more complex than they used to be. They require a new creative way of thinking and a very different work process,” says Sara Armbruster, vice president of strategy, research and new business innovation for Steelcase. “We believe that everyone has the capacity for creative thinking, and people are happier doing creative, productive work. Together, Microsoft and Steelcase will help organizations thoughtfully integrate place and technology to encourage creative behaviors at work.”

The Problem: Fostering Creativity as a Business Advantage

According to joint research conducted by Steelcase and Microsoft, creativity is seen as a critical job skill driven by organizations’ need for innovation and growth in addition to employees’ desire for meaningful work. However, today many organizations invest in technology and space as separate entities rather than approaching them holistically. The lack of cohesion creates sub-optimal conditions for fostering creativity at work.

The research released today (of 515 US and Canadian companies with 100+ employees)[i] reveals the pressure people feel about the shift toward more creative work:

  • Seventy-two percent of workers from diverse fields including Health Care, Retail, Education, Financial Services and Manufacturing believe their future success depends on their ability to be creative.
  • Seventy-six percent believe emerging technologies will change their jobs, requiring more creative skills as routine work becomes automated.
  • There is greater need to collaborate in business, yet only 25 percent of respondents feel they can be creative in the places they currently have available for group work.
  • The study also reveals the connection between creativity and privacy, as employees ranked having a place to work without disruption as the second highest factor that could improve creativity, just behind the need for more time to think.

Creative Spaces

The companies’ exploration of creative work found that creativity is a process in which anyone can engage and requires diverse work modes as well as different types of technology. People need to work alone, in pairs and in different size groups throughout a creative process, and they need a range of devices that are mobile and integrated into the physical workplace. Additionally, spaces should inspire people without compromising performance.

“Every Microsoft Surface device strives to enable the creator in each of us. Devices like Surface Studio and Surface Hub are fundamentally designed around how people naturally create, connect, and collaborate,” says Ryan Gavin, general manager, Microsoft Surface Marketing. “With Steelcase we have the compelling opportunity to blend place and technology into a seamless environment that allows our most important asset, our people, to unlock their creativity and share that with others. The future of work is creative.”

“Most employees are still working with outdated technology and in places that are rooted in the past, which makes it difficult for them to work in new, creative ways,” said Bob O’Donnell, president, founder and chief analyst at TECHnalysis Research. “Creative Spaces were clearly designed to bridge the current gap between place and technology and to help creative work happen more naturally.”

Five initial Creative Spaces are on display now at the Steelcase WorkLife Center in New York City. Spaces include:

Focus Studio: Individual creative work requires alone time to focus and get into flow, while also allowing quick shifts to two-person collaboration. This is a place to let ideas incubate before sharing them with a large group, perfect for focused work with Microsoft Surface Book or Surface Pro 4.

Duo Studio: Working in pairs is an essential behavior of creativity. This space enables two people to co-create shoulder-to-shoulder, while also supporting individual work with Microsoft Surface Studio. It includes a lounge area to invite others in for a quick creative review with Surface Hub or to put your feet up and get away without going away.

Ideation Hub: A high-tech destination that encourages active participation and equal opportunity to contribute as people co-create, refine and share ideas with co-located or distributed teammates on Microsoft Surface Hub.

Maker Commons: Socializing ideas and rapid prototyping are essential parts of creativity. This space is designed to encourage quick switching between conversation, experimentation and concentration, ideal for a mix of Surface devices, such as Surface Hub and Surface Book.

Respite Room: Creative work requires many brain states, including the need to balance active group work with solitude and individual think time. This truly private room allows relaxed postures to support diffused attention.

“We are facing a time of unprecedented change at work. Through this partnership we will bring together space and technology to help workers and organizations solve the workplace challenges they face today and in the future and ultimately perform their best at work,” explains Armbruster.

Steelcase: Microsoft Surface Hub Reseller

Select Steelcase dealers are authorized to resell Microsoft Surface Hub as a part of the Microsoft partner network beginning today in the United States and Canada, and in later Summer 2017 additional dealers in Germany and the United Kingdom are expected to be added to the program. The companies will announce additional markets in the coming months. As the spaces roll out in the Americas, Europe and Asia Pacific, the range of spaces will continue to expand and evolve.

Internet of Things

In the coming months, Steelcase expects to announce new technology-enabled office solutions built on Microsoft Azure IoT technology, which will provide companies with analytics that help improve workplaces and solutions to help employees find the best places to do diverse types of work within the office.

For more information on Creative Spaces and the partnership between Microsoft and Steelcase, visit www.steelcase.com/creativity or www.microsoft.com/en-us/devices/business/steelcase.

About Microsoft

Microsoft (Nasdaq “MSFT” @Microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

About Steelcase Inc.

For over 100 years, Steelcase Inc. has helped create great experiences for the world’s leading organizations. We demonstrate this through our family of brands – including Steelcase®, Coalesse®, Designtex® PolyVision® and Turnstone®. Together, they offer a comprehensive portfolio of architecture, furniture and technology products and services designed to unlock human promise and support social, economic and environmental sustainability. The company is globally accessible through a network of channels, including over 800 dealer locations. Steelcase is a global, industry-leading and publicly traded company with fiscal 2016 revenue of $3.1 billion.

https://www.steelcase.com/press-releases/steelcase-microsoft-announce-development-technology-enabled-spaces-designed-boost-creative-work/ 


[i] Based on a Microsoft and Steelcase February 2017 study of 515 US and Canadian companies with 100+ employees.

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Microsoft opens cybersecurity center to protect Mexicans

MEXICO CITY Feb. 24, 2017 To reinforce its commitment to help people, companies and countries within Latin America to continue their journey towards digital transformation, Microsoft is launching a Cybersecurity Engagement Center in Mexico, part of a global initiative to present the company’s unique perspective on matters of IT security, which is not only the result of several decades of experience in the development and ongoing improvement of software, but also of the operation of one of the industry’s most robust and trustworthy cloud computing platforms.

At Microsoft there is a strong belief that having a fixed stance on operational security is the starting point, which also implies its continuous practice. This is made a reality by the company’s goals that focus on protecting, detecting and responding to security threats.

“At Microsoft, we are committed to invest in the region so we can bring our cybersecurity capabilities to customers by identifying current threats that affect the economy’s prosperity. By opening this Cybersecurity Center, we are offering our clients protection from attacks and security risks, as well as ways to detect them and find solutions,” explained Jorge Silva, general manager of Microsoft Mexico.

The center will serve Mexico and other Latin American countries. Some of its functions will include:

  • Taking advantage of Microsoft’s proactive role in matters of fighting cybercrime, particularly in the dismantling of criminal organizations that operate through Botnet schemes
  • Allowing cybersecurity experts from Mexico and elsewhere in Latin America to work with Microsoft specialists to fight cybercrime together
  • Acting as a headquarters for the development of training activities in order to support the building and strengthening of technical capabilities; these activities are geared toward authorities and the public sector

“This new center will work together with Microsoft’s Cybercrime Center in Redmond, Washington. The objective is to help companies and governments with security solutions, which help them in their digital transformation through the international support of the intelligence, data analysis, avant-garde forensics and legal strategies that we offer,” added Jean-Philippe Courtois, executive vice president and president, Microsoft Global Sales, Marketing and Operations, during his visit to the Cybersecurity Center in Mexico City.

In conjunction with the opening of this center, Microsoft is signing with the Federal Police (in representation of the Mexican government), a Government Security Program that reinforces the work of carrying out actions focused on technological research in order to promote IT security and also to prevent and fight crimes that are committed through the internet.

The agreement was signed by Manelich Castilla, commissioner general of the Federal Police, and Jorge Silva, general manager of Microsoft Mexico. Renato Sales Heredia, national security commissioner of Mexico’s Secretariat of the Interior, and Jean-Philippe Courtois, executive vice president and president, Microsoft Global Sales, Marketing and Operations, were present as honorary witnesses.

“By opening this center, we are bringing Microsoft’s offer of security increasingly closer to customers in order to be a strategic part of their transformation, and together we will create a country and a region that are more prosperous and productive, and above all, that are safer,” concluded Jorge Silva, general manager of Microsoft Mexico.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.


Lead image: Jorge Silva, General Manager of Microsoft Mexico; Renato Sales Heredia, National Security Commissioner of Mexico’s Secretariat of the Interior; Jean-Philippe Courtois, Executive Vice President and President, Microsoft Global Sales, Marketing and Operations; and Alejandra Lagunes, Mexico’s National Digital Strategy Coordinator.

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Flipkart and Microsoft forge cloud partnership to expand e-commerce in India

BANGALORE, India — Feb. 20, 2017 — Microsoft Corp. and Flipkart, India’s leading marketplace, on Monday announced a strategic partnership to provide consumers in India with the best online shopping service. As a first step in the broad collaboration between the two companies, Flipkart will adopt Microsoft Azure as its exclusive public cloud platform. Microsoft CEO Satya Nadella and Flipkart Group CEO and co-founder Binny Bansal announced the news at an event in Bangalore.

“At Microsoft, we aim to empower every Indian and every Indian organization with technology, and key to this is forging strategic partnerships with innovative companies like Flipkart,” Nadella said. “Combining Microsoft’s cloud platform and AI capabilities with Flipkart’s existing services and data assets will enable Flipkart to accelerate its digital transformation in e-commerce and deliver new customer experiences.”

“Flipkart has always been committed to its vision of transforming commerce in India through technology,” Bansal said. “Given Microsoft’s strong reputation in cloud computing, coupled with scale and reliability, this partnership allows us to leverage our combined strength and knowledge of technology, e-commerce and markets to make online shopping more relevant and enriching for customers.”

Launched in 2007, Flipkart has amassed unparalleled scale in India through customer-centric innovations that have made online shopping a seamless, accessible and affordable experience for over 100 million Indians. Its innovative disruptions like Cash on Delivery, No Cost EMI, Product Exchange, easy returns, same-day delivery and instant refunds have paved the way for the e-commerce market in India.

Starting with computing infrastructure, Microsoft Azure will ultimately add a layer of advanced cloud technologies and analytics to Flipkart’s existing datacenters. Microsoft’s strong presence in India, along with its global scale, allows for continued growth and expansion, setting the stage for the long-term partnership.

Flipkart plans to use the artificial intelligence, machine learning and analytics capabilities in Azure, such as Cortana Intelligence Suite and Power BI, to optimize its data for innovative merchandising, advertising, marketing and customer service. With powerful insights about its business and new, intelligent services, Flipkart can deliver increasingly relevant and personalized experiences to its customers.

About Flipkart

Flipkart is India’s largest e-commerce marketplace with a registered customer base of over 100 million. Flipkart offers more than 80 million products across 80+ categories including Smart Phones, Books, Media, Consumer Electronics, Furniture, Fashion and Lifestyle.

Launched in October 2007, Flipkart is known for its path-breaking services like Cash on Delivery, experience zones and a 10-day replacement policy. Flipkart was the pioneer in offering services like In-a-Day Guarantee (50 cities) and Same-Day-Guarantee (13 cities) at scale. With over 100,000 registered sellers, Flipkart has redefined the way brands and MSME’s do business online.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Microsoft announces debt offerings

REDMOND, Wash. — Jan. 30, 2017 — Microsoft Corp. on Jan. 30 announced the pricing of its offering of $17.00 billion aggregate principal amount of senior unsecured notes. The notes consist of the following tranches:

  • $1.50 billion of 1.850 percent notes due February 6, 2020
  • $1.75 billion of 2.400 percent notes due February 6, 2022
  • $2.25 billion of 2.875 percent notes due February 6, 2024
  • $4.00 billion of 3.300 percent notes due February 6, 2027
  • $2.50 billion of 4.100 percent notes due February 6, 2037
  • $3.00 billion of 4.250 percent notes due February 6, 2047
  • $2.00 billion of 4.500 percent notes due February 6, 2057

Microsoft intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, funding for working capital, capital expenditures, repurchases of its capital stock, acquisitions, and repayment of its existing debt. The offerings are expected to close on February 6, 2017.

The joint book-running managers for the offering are Barclays Capital Inc., HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., BNP Paribas Securities Corp., and BNY Mellon Capital Markets LLC. The co-managers for the offering are Academy Securities, Inc., Blaylock Beal Van, LLC, CAVU Securities, LLC, C.L. King & Associates, Inc., Drexel Hamilton, LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Company, Inc. and Siebert Cisneros Shank & Co., L.L.C.

A copy of the prospectus relating to the offering may be obtained by calling Barclays Capital Inc. toll-free at 1 (888) 603-5847 or by emailing barclaysprospectus@broadridge.com; by calling HSBC Securities (USA) Inc. toll-free at 1 (866) 811-8049; by calling Citigroup Global Markets Inc. toll-free at 1 (800) 831-9146 or by emailing prospectus@citi.com; by calling Credit Suisse Securities (USA) LLC toll-free at 1 (800) 221-1037; by calling Goldman, Sachs & Co. toll-free at 1 (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; by calling J.P. Morgan Securities LLC collect at 1 (212) 834-4533; by calling Merrill Lynch, Pierce, Fenner & Smith Inc. toll-free at 1 (800) 294-1322; by calling Morgan Stanley & Co. LLC toll-free at 1 (866) 718-1649 or by emailing prospectus@morganstanley.com; by calling U.S. Bancorp Investments Inc. toll-free at 1 (877) 558-2607; by calling BNP Paribas Securities Corp. toll-free at 1 (800) 854-5674; by calling BNY Mellon Capital Markets LLC toll-free at 1 (800) 269-6864; or by contacting any of the other underwriters of the offering.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft Media Relations or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Microsoft Cloud strength highlights second quarter results

REDMOND, Wash. — January 26, 2017 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2016:

  • Revenue was $24.1 billion GAAP, and $26.1 billion non-GAAP
  • Operating income was $6.2 billion GAAP, and $8.2 billion non-GAAP
  • Net income was $5.2 billion GAAP, and $6.5 billion non-GAAP
  • Diluted earnings per share was $0.66 GAAP, and $0.83 non-GAAP

Microsoft completed the acquisition of LinkedIn Corporation (“LinkedIn”) on December 8, 2016. Financial results from the acquired business are reported in the Productivity and Business Processes segment. For the second quarter of fiscal year 2017, the results of LinkedIn, including amortization of acquired intangible assets, contributed revenue, operating income, net income, and diluted earnings per share of $228 million, $(201) million, $(100) million, and $(0.01), respectively.

“Our customers are seeing greater value and opportunity as we partner with them through their digital transformation,” said Satya Nadella, chief executive officer at Microsoft. “Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $23,796 $6,026 $5,018 $0.62
Net Impact from Windows 10 Revenue Deferrals 1,710 1,710 1,128 0.14
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $25,506 $7,736 $6,146 $0.76
2016 As Reported (GAAP) $24,090 $6,177 $5,200 $0.66
Net Impact from Windows 10 Revenue Deferrals 1,976 1,976 1,315 0.17
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $26,066 $8,153 $6,515 $0.83
Percentage Change Y/Y (GAAP) 1% 3% 4% 6%
Percentage Change Y/Y (non-GAAP) 2% 5% 6% 9%
Percentage Change Y/Y (non-GAAP) Constant Currency 4% 8% 10% 13%

 

Microsoft is providing the following table to help investors compare results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn.

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) from Table Above $25,506 $7,736 $6,146 $0.76
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) from Table Above $26,066 $8,153 $6,515 $0.83
LinkedIn Results Including Amortization of Acquired Intangible Assets 228 (201) (100) (0.01)
2016 As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP) $25,838 $8,354 $6,615 $0.84
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) 1% 8% 8% 11%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) Constant Currency 3% 11% 12% 15%

Microsoft returned $6.5 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2017.

“I am pleased with our results this quarter. We see strong demand for our cloud-based services and are executing well on our long-term growth strategy,” said Amy Hood, executive vice president and chief financial officer at Microsoft.

Revenue in Productivity and Business Processes was $7.4 billion and increased 10% (up 12% in constant currency), with the following business highlights:

  • Office commercial products and cloud services revenue increased 5% (up 7% in constant currency) driven by Office 365 commercial revenue growth of 47% (up 49% in constant currency)
  • Office consumer products and cloud services revenue increased 22% (up 21% in constant currency) and Office 365 consumer subscribers increased to 24.9 million
  • Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth
  • LinkedIn contributed revenue of $228 million for the period beginning on December 8, 2016

Revenue in Intelligent Cloud was $6.9 billion and increased 8% (up 10% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 12% (up 14% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue increased 93% (up 95% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Services revenue decreased 4% (down 2% in constant currency) with declines in custom support agreements offset by growth in Premier Support Services and consulting

Revenue in More Personal Computing was $11.8 billion and decreased 5% (down 4% in constant currency) driven primarily by lower phone revenue, with the following business highlights:

  • Windows OEM revenue increased 5% (up 5% in constant currency)
  • Windows commercial products and cloud services revenue increased 5% (up 6% in constant currency) driven by annuity revenue growth
  • Search advertising revenue excluding traffic acquisition costs increased 10% (up 11% in constant currency) driven by increased revenue per search and search volume
  • Gaming revenue decreased 3% (down 1% in constant currency) with lower Xbox console revenue offset by Xbox software and services revenue growth

Acquisitions and Divestitures

Microsoft completed the acquisition of LinkedIn on December 8, 2016 and the sale of its feature phone business in November 2016.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 26, 2018.

“As Adjusted” Financial Results and non-GAAP Measures

During the second quarter of fiscal years 2017 and 2016, GAAP revenue, operating income, net income, and diluted earnings per share include the net impact from Windows 10 revenue deferrals. During the second quarter of fiscal year 2017, GAAP revenue, operating income, net income, and diluted earnings per share include the results of LinkedIn. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance.

Net Impact from Windows 10 Revenue Deferrals. With respect to our non-GAAP measures related to Windows 10 revenue, we believe these measures bridge investor information and minimize potential confusion during the brief period between the time Windows 10 revenue recognition moved from upfront to ratable, and the adoption of the new revenue standard, when Windows 10 will again be recognized predominantly upfront. The net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from adoption of the new revenue standard.

LinkedIn Results. With respect to our non-GAAP measure related to LinkedIn results, we believe this measure will help investors compare actual results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn. We do not anticipate providing this non-GAAP measure in the future as our guidance will incorporate expected results for LinkedIn.

These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Net Impact from Windows 10 Revenue Deferrals. Microsoft recorded net revenue deferrals of $2.0 billion during the second quarter of fiscal year 2017 and net revenue deferrals of $1.7 billion during the second quarter of fiscal year 2016, related to Windows 10.

With the launch of Windows 10 in July 2015, Windows 10 customers receive future versions and updates at no additional charge. Under current revenue recognition accounting guidance, when standalone software is sold with future upgrade rights, revenue must be deferred over the life of the computing device on which it is installed. This is different from prior versions of Windows, which were sold without upgrade rights, where all revenue from original equipment manufacturer (“OEM”) customers was recognized at the time of billing, i.e., upfront.

When Microsoft adopts the new revenue standard, predominantly all Windows OEM revenue will be recognized at the time of billing, which is similar to the revenue recognition for prior versions of Windows. Additional information regarding the new revenue standard is provided in the “Recent Accounting Guidance Not Yet Adopted” section of Microsoft’s Form 10-Q for the quarter ended December 31, 2016 (Notes to Financial Statements). Microsoft reflects the recognition of Windows 10 revenue at the time of billing in “As Adjusted for Windows 10 Revenue Deferrals (non-GAAP)” revenue to provide comparability during the short period where Windows 10 will be recognized over the estimated life of a device, i.e., ratable, rather than at the time of billing.

LinkedIn Results. For the second quarter of fiscal year 2017, LinkedIn contributed revenue, operating income, net income, and diluted earnings per share of $228 million, $(201) million, $(100) million, and $(0.01), respectively. Microsoft excludes the results of LinkedIn and reflects the recognition of Windows 10 revenue at the time of billing in “As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP)” to help investors compare results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

Financial Performance Constant Currency Reconciliation

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $23,796 $6,026 $5,018 $0.62
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $25,506 $7,736 $6,146 $0.76
2016 As Reported (GAAP) $24,090 $6,177 $5,200 $0.66
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $26,066 $8,153 $6,515 $0.83
2016 As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP) $25,838 $8,354 $6,615 $0.84
Percentage Change Y/Y (GAAP) 1% 3% 4% 6%
Percentage Change Y/Y (non-GAAP) 2% 5% 6% 9%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) 1% 8% 8% 11%
Constant Currency Impact $(339) $(228) $(260) $(0.03)
Constant Currency Impact Excluding LinkedIn $(333) $(223) $(251) $(0.03)
Percentage Change Y/Y (non-GAAP) Constant Currency 4% 8% 10% 13%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) Constant Currency 3% 11% 12% 15%

Segment Revenue Constant Currency Reconciliation

Three Months Ended December 31,
($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2015 As Reported (GAAP) $6,690 $6,343 $12,473
2016 As Reported (GAAP) $7,382 $6,861 $11,823
Percentage Change Y/Y (GAAP) 10% 8% (5)%
Constant Currency Impact $(108) $(112) $(119)
Percentage Change Y/Y (non-GAAP) Constant Currency 12% 10% (4)%

Selected Product and Service Revenue Constant Currency Reconciliation       

Three Months Ended December 31,
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y (non-GAAP) Constant Currency
Office commercial products and cloud services 5% 2% 7%
Office 365 commercial 47% 2% 49%
Office consumer products and cloud services 22% (1)% 21%
Dynamics products and cloud services 7% 2% 9%
Server products and cloud services 12% 2% 14%
Azure 93% 2% 95%
Enterprise Services (4)% 2% (2)%
Windows OEM 5% 0% 5%
Windows commercial products and cloud services 5% 1% 6%
Search advertising excluding traffic acquisition costs 10% 1% 11%
Gaming (3)% 2% (1)%

 Commercial Cloud Annualized Revenue Run Rate

Commercial cloud annualized revenue run rate is calculated by taking revenue in the final month of the quarter multiplied by twelve for Office 365 commercial, Azure, Dynamics 365, and other cloud properties.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims, or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of January 26, 2017. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

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Microsoft appoints Kevin Scott as Chief Technology Officer

REDMOND, Wash. – Jan. 24, 2017 Microsoft Corp. has named Kevin Scott to a newly created role of chief technology officer (CTO) for the company. This is an expansion of Scott’s new role at LinkedIn as senior vice president of Infrastructure. As Microsoft’s CTO, Scott will drive strategic, cross-company initiatives to maximize Microsoft’s impact with members and customers.

Scott joins Microsoft’s Senior Leadership Team, reporting directly to Microsoft Chief Executive Officer Satya Nadella.

“We are thrilled that Kevin will bring to Microsoft his unique expertise developing platforms and services that empower people and organizations,” Satya said. “Kevin’s first area of focus is to bring together the world’s leading professional network and professional cloud.”

“The thing that gets me up in the morning and that has always excited me about technology is its role in empowering people and helping to enrich their lives,” Scott said. “I am very optimistic about where Microsoft is headed and how we can continue to use technology to solve some of society’s most important challenges.”

Scott will continue to play an active role at LinkedIn as senior vice president of Infrastructure and remain a member of LinkedIn’s executive management team. His distinguished 20-year career spans both academia and industry as a researcher, engineer and leader. Prior to his role as senior vice president of Engineering and Operations at LinkedIn, Scott held a number of engineering leadership roles at Google and AdMob. Scott is an adviser to several Silicon Valley startups, an active angel investor and founder of the nonprofit organization Behind the Tech.

About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more. 

Note to editors: A direct link to Scott’s executive bio can be found at http://news.microsoft.com/exec/kevin-scott/. For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at https://www.microsoft.com/en-us/Investor/

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Microsoft announces quarterly earnings release date

REDMOND, Wash. — Jan. 6, 2017 — Microsoft Corp. will publish fiscal year 2017 second-quarter financial results after the close of the market on Thursday, Jan. 26, 2017, on the Microsoft Investor Relations website at https://www.microsoft.com/en-us/Investor/. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at https://www.microsoft.com/en-us/Investor/.

 

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Microsoft, NXP Semiconductors, IAV and auto mobility partners showcase innovations for safe, secure and personalized automated driving at CES 2017

LAS VEGAS — Jan. 3, 2017 — At CES 2017 from Jan. 4‒8 in Las Vegas, Microsoft Corp., NXP Semiconductors, IAV, and auto mobility partners Cubic Telecom, Esri and Swiss Re will showcase their collective vision of safe and secure end-to-end mobility through a highly automated driving demonstration and experience.

From the Gold Lot/North Plaza NP-2 of the Las Vegas Convention Center, CES attendees can take a test drive in a highly automated vehicle to understand how the cloud and artificial intelligence can enable personalized in-car experiences. Attendees will see how cars securely “talk” to other cars, how they monitor what is happening in their surroundings to improve safety, and how cars can adapt to different driving styles to deliver more personal driving experiences. Participants will also learn how these emerging technologies will enable new, flexible insurance models.

The following technology will be integrated into the conceptual demonstration at CES:

  • Microsoft will showcase future scenarios where artificial intelligence bots can help improve driver safety, engagement, and integration with calendars and personal preferences. Microsoft will also analyze current traffic situations and pedestrian density in real time based on sensor data such as V2X, radar, camera and LIDAR, using the Microsoft Azure Cloud.
  • NXP Semiconductors will showcase improved road safety and traffic flow via secure communications between vehicles (V2V) and between vehicles and the surrounding infrastructure (V2I). Use cases will include collision warnings, intelligent traffic lights and vulnerable road-user detection at intersections — all based on NXP’s automotive RoadLINK products. NXP cooperates with Delphi and Savari for the onboard and roadside units.
  • IAV has developed highly automated driving technology. Automated driving is a major contributor in the quest to improve urban congestion and reduce its associated ‎pollution. The highly automated driving vehicle is capable of connecting with infrastructure, pedestrians and the Microsoft Azure Cloud to enable the vehicle to react automatically and safely in its surroundings.
  • Esri’s mapping and spatial analytics technology, which talks to Microsoft Cortana, provides the geospatial context to increase safety on the road and improve the overall driver experience. Esri’s enterprise GIS platform services in the Azure Cloud provide the geographic content and analytics to better understand driver behavior, predict road conditions to improve traffic flow, and share connected car sensor data within the ecosystem. These features allow smart cities to react faster to new issues such as fixing unsafe potholes or removing hazardous objects from the road.
  • Swiss Re’s smart insurance models simulate personalized, flexible insurance coverage using Microsoft Azure technology to offer future connected mobility solutions.
  • Full 4G LTE connectivity by Cubic Telecom powers high-quality, always-on infotainment along with access to competitive bundled service plans that include Wi-Fi hotspot services, personal apps and more.

Quotes

“As cars get smarter, they need more software and analytics capabilities,” said Kevin Dallas, corporate vice president of business development for Microsoft. “This collaboration at CES 2017 is another example of how we work together to continue testing, to see what sticks, and to help automakers bring truly personalized experiences to drivers and services that learn unique behaviors and can make improvements over time.”

“Self-driving cars must be perfectly safe and secure,” said Lars Reger, senior vice president and chief technology officer of automotive at NXP Semiconductors. “This requires firstly: an array of high-performance sensors; secondly: a powerful detection and sensor fusion system complemented with cloud connectivity; and thirdly: an efficient system play with industry leaders. We are happy to see all of this come together in our joint showcase at CES.”

“IAV has several test vehicles demonstrating the current state of this future technology in Europe and in the United States,” said Karsten Schulze, senior vice president of active safety and driver assistance at IAV. “Those vehicles have already covered a huge number of miles with almost no intervention from the driver.”

CES attendees interested in seeing the live connected vehicle demonstration can participate in a drive event, located at the Gold Lot/North Plaza NP-2 from Jan. 5-8. Executives from all participating companies will be onsite to detail the technology.

Media demonstrations

Members of the media can book a demonstration on the Jan. 4 media day or at another time through Jan. 8. Send a request by email to arrange a time.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Links to all partner webpages

Microsoft (Nasdaq “MSFT” @Microsoft): www.microsoft.com
NXP Semiconductors (NASDAQ “NXPI” @NXP): www.nxp.com/automotive
IAV Automotive Engineering: https://www.iav.com/
Esri: (@Esri): http://www.esri.com/
Swiss Re: http://www.swissre.com/
Cubic Telecom: (@cubictelecom): http://www.cubictelecom.com

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com.Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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