Microsoft’s Profits Dip Despite Strong Phone Sales

TIME

Microsoft said Monday its profits fell more than 10% during its latest quarter despite an uptick in sales. Here are the key points from the tech giant’s latest earnings.

What you need to know: Microsoft’s sales jumped nearly 8% in the quarter ending Dec. 31, improving to $26.5 billion. That is in line with the $26.3 billion in revenue that analysts expected, according to Thomson Reuters. But the company’s profits fell by 10.6% to $5.9 billion, or 71 cents per share.

Contributing to the decline in earnings was a $243 million charge the company took from “integration and restructuring expenses” related to the massive layoffs Microsoft announced last summer as well as ongoing costs from integrating the mobile phone business it acquired from Nokia in early 2014.

Microsoft shares dropped by 2.5% in after-hours trading following the release of the company’s financials.

The big number: CEO Satya Nadella has…

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