--- description: The software firm took over of the fledgling cell-phone maker in April title: Nokia Drags Down Microsoft Profits image: https://static.time.com/v3/assets/bltea6093859af6183b/blt1b4d95c3723b98e6/69869c1ccd804d7353ccbf95/140717_inv_microsoft_1.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close * [Microsoft](/tag/microsoft/) ## Microsoft Update your preferences in [Account Settings](/account/preferences/) Close # Nokia Drags Down Microsoft Profits  by [Denver Nicks](/author/denver-nicks/)  ## Denver Nicks Update your preferences in [Account Settings](/account/preferences/) Close Jul 22, 2014 9:44 PM CUT  In this photo taken July 3, 2014, a worker walks past a Microsoft logo outside the Microsoft Visitor Center in Redmond, Wash. In this photo taken July 3, 2014, a worker walks past a Microsoft logo outside the Microsoft Visitor Center in Redmond, Wash.Ted S. Warren—AP  by [Denver Nicks](/author/denver-nicks/)  ## Denver Nicks Update your preferences in [Account Settings](/account/preferences/) Close Jul 22, 2014 9:44 PM CUT Quarterly profits at Microsoft fell 7.1% even as revenues [rose](http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY14/Q4/default.aspx "undefined"), due to the company’s April acquisition of cellphone maker Nokia, the software giant said in a quarterly financial report Tuesday. Microsoft’s core software products—like Windows and Office—continue to sell well to other businesses; revenue on commercial sales rose 11% in the last quarter. That strong performance wasn’t enough to make up for operating losses at Nokia, which totaled $692 million. The report comes on the heels of Microsoft [announcing](http://time.com/3001280/microsoft-to-cut-18000-jobs/ "undefined") it will slash up to 18,000 jobs over the coming year. Most of those cuts, the company said, will come from Nokia. The workforce drawdown is the largest in the company’s 39-year history. The report covers the fiscal fourth quarter, which ended June 30\. Revenue for the period is up 18% year over year. “Our solid execution and expense discipline allowed us to deliver a strong finish to the fiscal year,” said Amy Hood, executive vice president and chief financial officer at Microsoft. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/3020390/microsoft-earnings-profits/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/3020390/microsoft-earnings-profits/"},"headline":"Nokia Drags Down Microsoft Profits","datePublished":"2014-07-22T21:44:32.000Z","dateModified":"2026-04-13T08:02:49.546Z","description":"The software firm took over of the fledgling cell-phone maker in April","url":"https://time.com/3020390/microsoft-earnings-profits/","keywords":["Microsoft","Tech","Earnings","nokia"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt1b4d95c3723b98e6/69869c1ccd804d7353ccbf95/140717_inv_microsoft_1.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Denver Nicks","jobTitle":null,"url":"https://time.com/author/denver-nicks/"}],"articleSection":"World","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt1b4d95c3723b98e6/69869c1ccd804d7353ccbf95/140717_inv_microsoft_1.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"140717_INV_Microsoft_1","caption":"Microsoft logo outside the Microsoft Visitor Center in Redmond, Wash.","creditText":"Ted S. Warren—AP","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/microsoft/","name":"Microsoft"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/3020390/microsoft-earnings-profits/","name":"Nokia Drags Down Microsoft Profits"}}]}] ```