Quarterly profits at Microsoft fell 7.1% even as revenues rose, 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 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.
More Must-Read Stories From TIME
- How an Online Pharmacy Sold Millions Worth Of Dubious COVID-19 Drugs — While Patients Paid the Price
- Why Literally Millions of Americans Are Quitting Their Jobs
- Meet the Women Participating in the Study That Could Change Future of Breast Cancer
- Inside the Battle for the Hearts and Minds of Tomorrow's Business Leaders
- An Innovative Washington Law Aims to Get Foreign-Trained Doctors Back in Hospitals
- Why the Ex-Husband of a Missing Chinese Billionaire Is Risking All to Tell Their Story
- Timothée Chalamet Wants You to Wear Your Heart on Your Sleeve