Microsoft's financial results for the last quarter paint a grim picture for the company's Surface RT and consumer PC divisions.
The company reported in its financial returns that slow demand from the consumer PC space helped to hamper its returns and bring down revenues. But Microsoft noted that the enterprise space fared slightly better.
Additionally, the release of the Surface RT tablet brought headaches for Redmond as the recently unveiled price cuts forced the company to take a $900m write-off on the quarter. Microsoft hopes to make up the losses over the long term as customers buy up larger volumes of the discounted tablet.
Despite the rough quarter, Microsoft chief financial officer Amy Hood expressed optimisim that the company could turn itself around on the strength on a recently announced corporate overhaul designed to help the firm operate in the changing consumer markets.
“We know we have to do better," she said. "And that is the reason we made the strategic and organisational changes we made last week.”
Furthermore, the company hopes to boost its returns from the PC space in the coming months as the Windows 8.1 update hits shelves. Offered as a free update to the underwhelming Windows 8, the 8.1 upgrae will include a number of interface and search updates.
Overall, Microsoft reported a $19.9bn quarterly revenue haul, resulting in a $6.07bn profit.
While consumer PC and tablet sales were a disappointment for Microsoft, the company reported strong performances for its enterprise operations. The Microsoft Business division's revenues increased by around 14 percent on the quarter, while the Online Services division saw its revenues climb by some 9 percent over the previous year.
The company reported that cloud services including Windows Azure and Office 365 were performing particularly well with solid growth rates.
Kicking Palantir off of AWS is among their demands, too
Rafaela Vasquez was watching The Voice at the time of the crash, new evidence shows
PUBG price slashed on Steam after selling more than 50 million copies - as daily player numbers plunge
Use the same password for every website? It might be time to change them all