Microsoft Corp’s server and tools business turned an operating income into a loss during the second quarter, according to an official filing this week.
The unit turned in a $204m loss for the three months to December 31, down from $234m profit the previous year, on revenue that grew 21% to $2.1bn.
In its latest US Securities and Exchange Commission (SEC) filing, Microsoft blamed the loss on $651m in costs related to an employee stock option transfer program and a 10% increase in operating expenses including headcount related costs.
Reporting the quarterly results last month, Microsoft said overall income dropped 16% to $1.5bn following charges for a stock-based compensation scheme and also charges related to investment impairments.
In other news, Indian IT solutions provider Satyam Computer Services Ltd has effectively reversed a market trend by opening up a development center in Mississauga, Ontario.
The Hyderbad-based company says the new center, which will employ around 50 staff, will be used primarily as a software development hub and will connect to similar centers located in the US and India.
Satyam believes it will now be in a better position to service local operations and clients in Canada.
This article is based on material originally published by ComputerWire
