Microsoft posted a financial report showing $3.2 billion loss in its fourth fiscal quarter as the company wrote down $7.5 billion related to the restructuring of Nokia handset business which it acquired last year.
The company’s shares fell 4 percent to $45.45 on Tuesday, but rose to $47.28 at closing.
Sales of the Windows operating system to new PCs also fell 22 percent.
“While the PC ecosystem has been under pressure recently, I do believe that Windows 10 will broaden our economic opportunities and return Windows to growth,” Microsoft CEO Satya Nadella said.
However, Microsoft’s commercial cloud business rose 96 percent thanks to 3 million new subscribers for Office 365 which now totals 15.2 million subscriptions.
According to the company’s data, the software giant’s game console, Xbox, also enjoyed a 27 percent rise in the quarter.
Earlier this month, Microsoft announced it would lay off 7,800 jobs from mainly its ill-fated mobile phone business.