Microsoft offers glimpse into segment profitabilit
Reuters | at | by Mike
Microsoft nascent businesses in small business software and mobile devices, as well as MSN and its home entertainment division, all posted operating losses in the third quarter, according to a Securities and Exchange Commission filing on Thursday. Microsoft, which recently started to organize the financial reporting of its business around seven new segments, had not previously disclosed the operating profitability of those divisions, information that analysts and investors have been eager to see.
Based on Microsoft's internal accounting methods, which differ from the figures reported on its quarterly earnings release, the Home and Entertainment division that includes the Xbox video game business lost $177 million on operations on revenue of $505 million in the September quarter.