Surface tablets nearly hit $1 billion as Microsoft revenues jump 25 percent

surface pro 3

Microsoft reported a 25 percent increase in revenue from the same period a year ago as some of its key businesses, including Office 365 and the Xbox, delivered sharp gains.

Overall, Microsoft reported revenue of $23.2 billion, an increase of 25 percent from a year ago. Microsoft’s net income slipped to $4.54 billion, down 13.4 percent from $5.2 billion a year ago. However, those results also included $1.14 billion in restructuring costs attributed to the integration of Nokia.

“We are innovating faster, engaging more deeply across the industry, and putting our customers at the center of everything we do, all of which positions Microsoft for future growth,”  said Satya Nadella, chief executive officer of Microsoft, in a statement. “Our teams are delivering on our core focus of reinventing productivity and creating platforms that empower every individual and organization.”

Highlights of the quarter included the Devices and Consumer business, which grew 47 percent to $10.96 billion. That business includes the Surface line, which recorded $908 million in total and is closing in on $1 billion per quarter, even as the Surface Pro 2 has quietly disappeared from its product offering. And Xbox console sales—including both the Xbox One and Xbox 360—more than doubled.

Microsoft said that its Nokia phone revenue totaled $2.6 billion, on top of $478 million of gross margin.

Commercial revenue grew 10 percent to $12.28 billion, Microsoft said. Windows volume licensing revenue increased 10 percent, it added. 

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