Microsoft is forced to pass its transformation - Boursier.com

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(Boursier.com) – Microsoft has won 11.4% Friday on Wall Street, falling to $ 21.4 after the publication of its results for the fourth quarter of fiscal 2013. For several reasons, the group Redmond disappointed by sharing revenues totaling 19.9 billion dollars, ie below the consensus of $ 20.7 billion. Its operating income stood at $ 6.07 billion and net income to $ 4.97 billion ($ 0.59 per share). Analysts on average expected a quarterly EPS of $ 0.75. Despite the disappointment, Oppenheimer maintained its confidence by recommending to “overweight”. However, the broker lowered from 39 to 37 USD its price target.

Impairment Surface weigh, but not only!
The market is a major disappointment, an analyst at Pacific Crest judging the same publication as the largest failure ever seen in expectations Microsoft. The firm does not make mystery. The slowdown is related to lower sales of computer equipment. He has affected to 6% of the Windows business group, which represents 25% of company revenues. Windows 8 is a disappointment and grief to attract customers. The launch of the new operating system has failed to provide the expected growth opportunities, even if table on the launch of an improved version in September. In addition, the U.S. giant has also had to spend $ 900 million impairment on its surface stock shelves. Microsoft admits therefore have to improve its performance, especially in the segment of mobile devices. The Redmond must therefore accelerate and most importantly, successful transformation announced …

In work until the end of the year!
Last week, Microsoft has indeed made from a reorganization of its internal and managerial organization. The group dissolves 8 divisions ‘product’, and establishes a new organization. Four new entities are structured around themes expanded to better collaboration and more performance. Windows Phone and Xbox software are merged into a new entity led by Terry Myerson. Satya Nadella took over the management of the group dedicated to the ‘cloud’ and businesses. Qi Lu leads the group ‘applications’, oversees the Office franchise takes care of Skype. Julie Larson-Green is the head of the entity dedicated to new equipment and studios Xbox hardware, tablet size, accessories and games … Financial and marketing functions will be centralized. This reorganization of the U.S. software giant is expected to last until the end of 2013.

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