TECHNICAL ANALYSIS – USDJPY INTRADAY BULLISH AS PRICES CHALLENGE THE CLOUD TOP

TECHNICAL ANALYSIS – USDJPY INTRADAY BULLISH AS PRICES CHALLENGE THE CLOUD TOP

TECHNICAL ANALYSIS – USDJPY INTRADAY BULLISH AS PRICES CHALLENGE THE CLOUD TOP

shadow

TECHNICAL ANALYSIS USDJPY has been edging higher for a second straight day. The pair today hit a weekly high.

Delving into the Ichimoku analysis, the Tenkan-sen line (red) crossed below the Kijun-sen one (blue) in mid-January. This is a short-term negative signal. However, the stochastics which transmit immediate market sentiment are painting a bullish intraday picture as the %K line is at bullish levels at 62, while it has also crossed above the slow %D line. Both these facts indicate positive intraday momentum.

 



Other StoriesBuz Traders Follow

TECHNICAL ANALYSIS

In its intraday movement, the price has moved above the 50-day moving average (MA) which is currently at 115.10 and is challenging the cloud top at 115.25. The area from the cloud top up to the Kijun-sen line (at around 115.50) is expected to provide some resistance to upside moves. A successful close above this area will bring into view the 117 area, a key area in the past which is likely to act as resistance. If prices cross this as well, the mid-December 10-month high of 118.66 would be subsequently eyed.

On the downside, the area around 114 which is where the Tenkan-sen line is currently situated is likely to act as immediate support to potential downside pressure. Should prices break below it, the late January 7-week low of 112.516 would come into focus as another important support level.

Finally, it is worth mentioning that the pair recorded a bullish (golden) cross at the start of December when the 50-day MA moved below the 200-day one. This is a medium term bullish signal whose strength will be reinforced should prices move comfortably above the 50-day MA.
Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




TECHNICAL ANALYSIS – GOLD BULLISH AS IT ENTERS THE CLOUD; RECORDS 2-MONTH HIGH

TECHNICAL ANALYSIS – GOLD BULLISH AS IT ENTERS THE CLOUD; RECORDS 2-MONTH HIGH

TECHNICAL ANALYSIS – GOLD BULLISH AS IT ENTERS THE CLOUD; RECORDS 2-MONTH HIGH

shadow

Gold is posting some gains during today’s session so far, at one point rising above 1219 recording a 2-month high. Should it close higher, it will mark the 10th trading day of gains out of the last 11.

Delving into the Ichimoku analysis, the Tenkan-sen line (red) has crossed above the Kijun-sen (blue) in the beginning of January. This alignment is a bullish short-term signal. The bullish short-term momentum is reinforced by the RSI indicator which is at 66, well above the 50 threshold that separates bullish from bearish market sentiment (note though that it is fairly close to the 70 overbought level).

Continuing with the Ichimoku, prices have recently entered the cloud. Should they exit it from above, we would expect a continuation of the uptrend. However, if they exit it from below, a change in momentum is to be expected.

The 1220 key-level is likely to provide some resistance to upside moves. Should the price close above this level, the cloud top at around 1230 will come into view as another resistance point.

On the downside, the cloud bottom which coincides with the 1200 psychological level is expected to act as support (this is roughly the level of the Tenkan-sen line as well). Should this mark be challenged, it will bring into scope the 50-day moving average (MA) at 1178.05 as another important support point.

Looking at the bigger picture, despite a bearish cross being recorded in November with the 50-day MA moving below the 200-day one, price action since then has challenged the strength of this signal setting a more neutral medium-term outlook.

iEx.ec Blockchain Cloud Computing Platform Releases Its Whitepaper

iEx.ec Blockchain Cloud Computing Platform Releases Its Whitepaper

iEx.ec Blockchain Cloud Computing Platform Releases Its Whitepaper

Ex.ec is inventing the internet of the future by developing its first Blockchain-based, fully distributed cloud computing platform.

iEx.ec Blockchain Cloud Computing Platform Releases Its Whitepaper

December 26, 2016, Lyon France — iEx.ec has released the very first version of its whitepaper showcasing the future of Internet. The document offers a detailed description of iEx.ec’s vision, the market, development roadmap and the upcoming crowd sale of its tokens scheduled for January 17, 2017.

iEx.ec which stands for “I Execute” is a French/Chinese company headquartered in Lyon, France with an office provided by Tsinghua University X-elerator. The platform was first introduced at the Ethereum Devcon2 conference held in Shanghai, China in September 2016. The team also successfully showcased a demo of the platform at the Super Computing Exhibition 2016 held in Salt Lake City, USA.

With the platform, iEx.ec aims to provide Blockchain based distributed applications a scalable, secure and easy access to the computing resources required for their execution. It uses the blockchain to organize a market network where everyone can monetize their servers, applications, and data-sets. This technology extends the Ethereum smart contracts allowing the creation of virtual Cloud infrastructure that provides High-Performance Computing (HPC) services on-demand. bloc

iEx.ec leverages a set of research technologies that have been developed at the INRIA and CNRS research institutes in the field of Distributed and Parallel computing. iEx.ec relies on XtremWeb-HEP, a mature, solid, and open-source software which implements all the needed features viz. fault-tolerance, multi-applications, multi-users, hybrid public/private infrastructure, deployment of virtual images, data management, security and accountability, and more.

The new Proof-of-Contribution protocol being developed by iEx.ec allows off-chain consensus. With the Proof-of-Contribution protocol, external resource providers can have their resource usage certified directly on the Blockchain. iEx.ec aims to deploy a scalable, high-performance, secure and manageable infrastructure sidechain that will promote a new form of distributed governance, implying key HPC, Big Data, and Cloud industry leaders.

The team believes in a future of decentralized infrastructure and market network, where Big Data, HPC, IoT, and AI applications, highly valued data-sets, and computing resources (storage, CPU, GPU etc.) will be monetized on the Blockchain with the highest level of transparency, resiliency, and security. iEx.ec will be the key platform powering this future.

About iEx.ec

iEx.ec is a follow-up to the CloudPower project, which was supported by the French National Research Agency (French), the University of Lyon, the French National Institute for Research in Computer Science (INRIA), the University of Paris XI, and the French National Center for Scientific Research (CNRS).

Learn more about iEx.ec at – http://iex.ec




42% Discount off Cloud Mining Bitcoin, Ethereum, Zcash, DASH, and Litecoin with HashFlare

42% Discount off Cloud Mining Bitcoin, Ethereum, Zcash, DASH, and Litecoin with HashFlare

42% Discount off Cloud Mining Bitcoin, Ethereum, Zcash, DASH, and Litecoin with HashFlare

42% Discount off Cloud Mining Bitcoin, Ethereum, Zcash, DASH, and Litecoin with HashFlare

Hashflare is pleased to announce up to 42% discount off all orders of Bitcoin, Ethereum, DASH, Zcash, and Litecoin cloud mining contracts for the next week. Simply sign up for a free account by clicking here for up to 42% off all cloud mining purchases until November 27th only: the best value Dash, ETH, BTC and LTC cloud mining to be found.

With over 3 years experience in the industry, the platform also offers lifetime Scrypt and Bitcoin cloud mining contracts, and one year ETH contracts, with many features including proof of hashrate, mining pool selection, and instant payouts.

Run by established cryptocurrency mining hardware provider HashCoins, which has over 3 years experience in the industry, HashFlare offers the ultimate Dash, Bitcoin, Scrypt and Ethereum cloud mining experience for users.

An important feature of the HashFlare platform is that customers can see and monitor their hashrate live, and even choose the mining pool they wish to mine on. This demonstrates that HashFlare is running a real cloud mining operation and is renting real mining hardware to users. Users can also find the most profitable mining pool for their hashing power.

HashFlare also offer instant Bitcoin, ETH, Zcash, and DASH withdrawals, lifetime contracts with no fixed end date, user mining pool allocation, fixed fees, and a user dashboard with highly detailed statistics.

Anyone, anywhere worldwide can easily cloud mine Bitcoin, Litecoin, Ethereum, Dash, and now Zcash, with no specialized knowledge or the need to maintain specialized mining hardware. All that needs to be done is sign up for a free account on HashFlare and purchase a contract that will instantly begin mining Bitcoin, Dash, Litecoin or Ethereum.

To sign up for a free account, and learn more about lifetime Bitcoin, Scrypt, or one year Ethereum, Zcash, and Dash cloud mining contracts with NO maintenance fees, which represents the best value on the market, please go to: https://hashflare.io

Make sure to click here to create your free account and claim 42% off all BTC, ETH, DASH, Zcash, and LTC cloud mining purchases until November 27th only

HashFlare is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC and other consumer protections. This press release is for informational purposes only. Cryptocurrency prices are volatile, and profitability of cloud mining contracts change over time due to mining difficulty rates, exchange rate fluctuations, and other factors.




Cloud Peak Energy, Inc. CLD NYSE

Penny Stock Cloud Peak Energy Inc. (CLD)

Penny Stock Cloud Peak Energy Inc. (CLD)

Cloud Peak Energy, Inc. CLD NYSE

Cloud Peak Energy Inc. (CLD) came public at $14.54 in 2009 and ground sideways in a narrow range pattern into a 2014 breakdown that posted a series of new lows into the January 2016 all-time low print at 1.08. The subsequent recovery wave mounted the 200-day EMA in July, signaling a new uptrend, with subsequent price action reaching the August 2015 high at $4.79.

Look for a reversal because a 100% retracement of a prior decline signifies resistance, with the next pullback set to offer a low-risk buying opportunity.

 Other Stories Buz Traders Watch

Cloud Peak Energy


A test at 200-day EMA support makes sense so look for the decline to target the July 29 breakout gap between $2.75 and $2.90 (red lines). A bounce starting at or near that level could generate rally momentum, lifting the stock well above the prior high and into the May 2015 high at $7.39.

Cloud Peak Energy Inc. (NYSE: CLD) is a firm headquartered in Gillette, Wyoming which mines coal in the Powder River Basin. The company was formed as a corporate spin-off from Rio Tinto Energy America in 2009.In its 2009 Annual Report Rio Tinto stated that it held a 48.3% stake in Cloud Peak Energy and its directly owned mines. Cloud Peak Energy also has a 50% stake in the Decker Coal Company, which operates the Decker Mine in Montana


Cloud Peak Energy Inc. Announces Schedule for Third Quarter and First Nine Months of 2016 Results

Cloud Peak Energy Inc. Announces Schedule for Third Quarter and First Nine Months of 2016 Results

Cloud Peak Energy Inc Cloud Peak Energy In. Announces Schedule for Third Quarter and First Nine Months of 2016 Results

NYSE:
CLD
 Cloud Peak Energy Inc. Announces Schedule for Third Quarter and First Nine Months of 2016 Results

GILLETTE, Wyo.Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal producers and the only pure-play Powder River Basin (“PRB”) coal company, plans to announce its third quarter and first nine months of 2016 financial results on October 27, 2016, after the markets close.

A conference call with management is scheduled at 5:00 p.m. ET on October 27, 2016 to review the results and current business conditions. The call will be webcast live over the Internet from our website at www.cloudpeakenergy.com under “Investor Relations”. Participants should follow the instructions provided on the website for downloading and installing the audio applications necessary to join the webcast. Interested individuals also can access the live conference call via telephone at (855) 793-3260 (domestic) or (631) 485-4929 (international) and entering pass code 87708100.

Following the live webcast, a replay will be available at the same URL on our website for seven days. A telephonic replay will also be available approximately two hours after the call and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering pass code 87708100. The telephonic replay will be available for seven days.

About Cloud Peak Energy®

Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is one of the largest U.S. coal producers and the only pure-play Powder River Basin coal company. As one of the safest coal producers in the nation, Cloud Peak Energy mines low sulfur, subbituminous coal and provides logistics supply services. The Company owns and operates three surface coal mines in the PRB, the lowest cost major coal producing region in the nation. The Antelope and Cordero Rojo mines are located in Wyoming and the Spring Creek Mine is located in Montana. In 2015, Cloud Peak Energy shipped approximately 75 million tons from its three mines to customers located throughout the U.S. and around the world. Cloud Peak Energy also owns rights to substantial undeveloped coal and complimentary surface assets in the Northern PRB, further building the Company’s long-term position to serve Asian export and domestic customers. With approximately 1,400 total employees, the Company is widely recognized for its exemplary performance in its safety and environmental programs. Cloud Peak Energy is a sustainable fuel supplier for approximately three percent of the nation’s electricity.

Price Drop on DASH, BTC, ETH and LTC Cloud Mining by HashFlare

Price Drop on DASH, BTC, ETH and LTC Cloud Mining by HashFlare

Price Drop on DASH, BTC, ETH and LTC Cloud Mining by HashFlare

Price Drop on DASH, BTC, ETH and LTC Cloud Mining by HashFlare

Hashflare is pleased to announce a 10% discount on all orders of one year Dash cloud mining contracts for the next week. Simply sign up for a free account by clicking here and use discount code HF16SMILE10 for 10% off all cloud mining purchases until October 15th only: the best value Dash, ETH, BTC and LTC cloud mining to be found.

With over 3 years experience in the industry, the platform also offers lifetime Scrypt and Bitcoin cloud mining contracts, and one year ETH contracts, with many features including proof of hashrate, mining pool selection, and instant payouts.

Run by established cryptocurrency mining hardware provider HashCoins, which has over 3 years experience in the industry, HashFlare offers the ultimate Dash, Bitcoin, Scrypt and Ethereum cloud mining experience for users.

An important feature of the HashFlare platform is that customers can see and monitor their hashrate live, and even choose the mining pool they wish to mine on. This demonstrates that HashFlare is running a real cloud mining operation and is renting real mining hardware to users. Users can also find the most profitable mining pool for their hashing power.

HashFlare also offer instant Bitcoin, ETH, and DASH withdrawals, lifetime contracts with no fixed end date, user mining pool allocation, fixed fees, and a user dashboard with highly detailed statistics. More information is available in a HashFlare review on a popular Bitcoin cloud mining and Etheruem cloud mining review site.

Anyone, anywhere worldwide can easily cloud mine Bitcoin, Litecoin, Ethereum, and now Dash, with no specialized knowledge or the need to maintain specialized mining hardware. All that needs to be done is sign up for a free account on HashFlare and purchase a contract that will instantly begin mining Bitcoin, Dash, Litecoin or Ethereum.

To sign up for a free account, and learn more about lifetime Bitcoin, Scrypt, or one year Ethereum and Dash cloud mining contracts with NO maintenance fees, which represents the best value on the market, please go to: https://hashflare.io

After creating your free account you can also claim 10% off all BTC, ETH, DASH and LTC cloud mining purchases make sure to use discount code HF16SMILE10 with all purchases.

 

 

 

HashFlare is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to FDIC and other consumer protections. This press release is for informational purposes only. Cryptocurrency prices are volatile, and profitability of cloud mining contracts change over time due to mining difficulty rates, exchange rate fluctuations, and other factors.

INTC Cloud Computing : Intel Corporation is Gearing Up For a Bullish Turn

INTC Cloud Computing: Intel Corporation is Gearing Up

INTC Cloud Computing : Intel Corporation is Gearing Up For a Bullish Turn

  • Cloud Computing Rivals are nipping at Intel Corporation’s (NASDAQ:INTC) heels, but INTC stock is still the undisputed King of Microchip Makers. No firm has been able to knock it off the throne, and that kind of toughness keeps me bullish on Intel stock.
  • The company has dramatically altered its business, scaling back investment in its personal computer (PC) division and redirecting those resources to formative areas like cloud computing. I’ve taken note of these manoeuvres because they suggest that INTC stock is deeply undervalued.
  • Data centers are in vogue. Every tech giant from Microsoft Corporation (NASDAQ:MSFT) to Alphabet Inc (NASDAQ:GOOG) is throwing money into the construction of new data centers. Why? Simple; they want to sell space on those servers to other companies. It’s already a lucrative business.

Cloud Computing is a Tailwind for Intel Stock

INTC Cloud Computing : Intel Corporation is Gearing Up For a Bullish Turn

Cloud Computing   INTC stock was insulated by its position as frontrunner, the rest of the semiconductor industry got trampled as investors rushed for the exit. The pain even extended to consumer electronics manufacturers like Apple Inc. (NASDAQ:AAPL), whose shares fell from $133.0 to as low as $90.34.

Investors tend to hold onto that kind of pessimism. It makes them temporarily blind to the obvious fact that cloud computing is going to be a money-maker for all parties involved.

 Other Stories you might Like

Cloud Computing Knowing the trend is one thing, but picking a winner is another thing altogether. INTC stock is facing competition from old rivals and new ones alike, from International Business Machines Corp. (NYSE:IBM) to Broadcom Ltd (NASDAQ:AVGO).

There are literally dozens of companies trying to profit from the rise of cloud computing, but these battles take place in the shadows. For retail investors, picking the winner in these situations can feel like pin the tail on the donkey; you may as well be blindfolded.

From my vantage point, 17.50 is way too low a P/E for INTC stock. Think of all the Netflix, Inc. (NASDAQ:NFLX) TV shows, Spotify songs, and YouTube videos that are watched on a daily basis. Think of the countless hours that Americans spend surfing the Web or browsing through apps. All of that data needs a home, and Intel stock helps facilitate that.

 

Microsoft Cloud Strength Highlights Fourth Quarter Results

Microsoft Cloud Strength Highlights Fourth Quarter Results

Microsoft Cloud Strength Highlights Fourth Quarter Results

Commercial cloud annualized revenue run rate exceeds $12.1 billion

 Microsoft Cloud Strength Highlights Fourth Quarter Results

REDMOND, Wash. — July 19, 2016 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2016:

  • Revenue was $20.6 billion GAAP, and $22.6 billion non-GAAP
  • Operating income was $3.1 billion GAAP, and $6.2 billion non-GAAP
  • Net income was $3.1 billion GAAP, and $5.5 billion non-GAAP
  • Diluted earnings per share was $0.39 GAAP, and $0.69 non-GAAP

“This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations,” said Satya Nadella, chief executive officer at Microsoft. “The Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Additional information regarding non-GAAP definitions is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

 

Three Months Ended June 30,

 ($ in millions, except per share amounts)

Revenue

Operating Income (Loss)

Net Income (Loss)

Diluted Earnings (Loss) per Share

2015 As Reported (GAAP)

$22,180

$(2,053)

$(3,195)

$(0.40)

  Impairment, Integration, and Restructuring Expenses

8,438

8,262

1.02

2015 As Adjusted (non-GAAP)

$22,180

$6,385

$5,067

$0.62

2016 As Reported (GAAP)

$20,614

$3,080

$3,122

$0.39

  Net Impact from Windows 10 Revenue Deferrals

2,028

2,028

1,467

0.19

  Impairment, Integration, and Restructuring Expenses

1,110

895

0.11

2016 As Adjusted (non-GAAP)

$22,642

$6,218

$5,484

$0.69

Percentage Change Y/Y (GAAP)

(7)%

*

*

*

Percentage Change Y/Y (non-GAAP)

2%

(3)%

8%

11%

Percentage Change Y/Y (non-GAAP) Constant Currency

5%

6%

23%

27%

* Not meaningful

 

 

 

 

During the quarter, Microsoft returned $6.4 billion to shareholders in the form of share repurchases and dividends.

The current quarter effective tax rate reflected a favorable mix of our income between the U.S. and foreign countries, as well as benefits associated with distributions from foreign affiliates. As such, the GAAP and non-GAAP tax rates were 7% and 15%, respectively.

“This fiscal year we invested in innovation and expanded our market presence in key product areas and geographies,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “I am pleased with the execution from our sales teams and partners this quarter who delivered a strong finish to the fiscal year.”

Revenue in Productivity and Business Processes grew 5% (up 8% in constant currency) to $7.0 billion, with the following business highlights:

  • Office commercial products and cloud services revenue grew 5% (up 9% in constant currency) driven by Office 365 commercial revenue growth of 54% (up 59% in constant currency)
  • Office consumer products and cloud services revenue grew 19% (up 18% in constant currency) with Office 365 consumer subscribers increasing to 23.1 million
  • Dynamics products and cloud services revenue grew 6% (up 7% in constant currency) with Dynamics CRM Online paid seats growing more than 2.5x year-over-year

Revenue in Intelligent Cloud grew 7% (up 10% in constant currency) to $6.7 billion, with the following business highlights:

  • Server products and cloud services revenue increased 5% (up 8% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue grew 102% (up 108% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Mobility customers nearly doubled year-over-year to over 33,000, and the installed base grew nearly 2.5x year-over-year

Revenue in More Personal Computing declined 4% (down 2% in constant currency) to $8.9 billion, with the following business highlights:

  • Windows OEM non-Pro revenue grew 27% (up 27% in constant currency), outpacing the consumer PC market, and Windows OEM Pro revenue grew 2% (up 2% in constant currency)
  • Surface revenue increased 9% (up 9% in constant currency) driven by Surface Pro 4 and Surface Book
  • Phone revenue declined 71% (down 70% in constant currency)
  • Xbox Live monthly active users grew 33% year-over-year to 49 million
  • Search advertising revenue excluding traffic acquisition costs grew 16% (up 17% in constant currency) with continued benefit from Windows 10 usage

Fiscal Year 2016 Results

Microsoft Corp. today announced the following results for the fiscal year ended June 30, 2016:

  • Revenue was $85.3 billion GAAP, and $92.0 billion non-GAAP
  • Operating income was $20.2 billion GAAP, and $27.9 billion non-GAAP
  • Net income was $16.8 billion GAAP, and $22.3 billion non-GAAP
  • Diluted earnings per share was $2.10 GAAP, and $2.79 non-GAAP

The following table reconciles our financial results reported in accordance with GAAP to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. The items included in our non-GAAP presentation have changed this quarter to reflect the recent Securities and Exchange Commission (“SEC”) Compliance & Disclosure Interpretations (“C&DIs”). Additional information regarding non-GAAP definitions is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.


 

Twelve Months Ended June 30,

 ($ in millions, except per share amounts)

Revenue

Operating Income

Net Income

Diluted Earnings per Share

2015 As Reported (GAAP)

$93,580

$18,161

$12,193

$1.48

  Impairment, Integration, and Restructuring Expenses

10,011

9,494

$1.15

2015 As Adjusted (non-GAAP)

$93,580

$28,172

$21,687

$2.63

2016 As Reported (GAAP)

$85,320

$20,182

$16,798

$2.10

  Net Impact from Windows 10 Revenue Deferrals

6,643

6,643

4,635

0.58

  Impairment, Integration, and Restructuring Expenses

1,110

895

0.11

2016 As Adjusted (non-GAAP)

$91,963

$27,935

$22,328

$2.79

Percentage Change Y/Y (GAAP)

(9)%

11%

38%

42%

Percentage Change Y/Y (non-GAAP)

(2)%

(1)%

3%

6%

The current year GAAP and non-GAAP effective tax rates were 15% and 19%, respectively.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on July 19, 2017.

“As Adjusted” Financial Results and non-GAAP Measures

During fiscal year 2016, GAAP revenue, operating income, net income, and diluted earnings per share include the net impact from Windows 10 revenue deferrals. During fiscal year 2016 and fiscal year 2015, GAAP operating income, net income, and diluted earnings per share include impairment, integration, and restructuring expenses. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. With respect to our non-GAAP measures related to Windows 10 revenue we believe these measures bridge investor information and minimize potential confusion during the brief period between the time Windows 10 revenue recognition moved from upfront to ratable, and the adoption of the new revenue standard, when Windows 10 will again be recognized predominantly upfront. The net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from adoption of the new revenue standard. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Net Impact from Windows 10 Revenue Deferrals. Microsoft recorded net revenue deferrals of $2.0 billion during the three months ended June 30, 2016 and net revenue deferrals of $6.6 billion during the twelve months ended June 30, 2016, related to Windows 10.

With the launch of Windows 10 in July 2015, Windows 10 customers receive future versions and updates at no additional charge. Under current revenue recognition accounting guidance, when standalone software is sold with future upgrade rights, revenue must be deferred over the life of the computing device on which it is installed. This is different from prior versions of Windows, which were sold without upgrade rights, where all revenue from original equipment manufacturer (“OEM”) customers was recognized at the time of billing, i.e., upfront.

When Microsoft adopts the new revenue standard, predominately all Windows OEM revenue will be recognized at the time of billing, which is similar to the revenue recognition for prior versions of Windows. Additional information regarding the new revenue standard is provided below. Microsoft reflects the recognition of Windows 10 revenue at the time of billing in “As Adjusted (non-GAAP)” revenue to provide comparability during the short period of time where Windows 10 will be recognized over the estimated life of a device, i.e., ratable, rather than at the time of billing.

Impairment, Integration and Restructuring Expenses. During the fourth quarter of fiscal year 2016, restructuring and related impairment expenses were $1.1 billion. Microsoft recorded $630 million of asset impairment charges which reflected the performance of our phone business, and $480 million of restructuring charges primarily related to our previously announced phone business restructuring plans.

During the fourth quarter of fiscal year 2015, impairment, integration, and restructuring expenses were $8.4 billion. Microsoft recorded $7.5 billion of goodwill and asset impairment charges related to our phone business, and $940 million of integration and restructuring expenses primarily related to our phone business restructuring plans.

For fiscal year 2015, impairment, integration, and restructuring expenses were $10.0 billion. Microsoft recorded $7.5 billion of goodwill and asset impairment charges related to the phone business, and $2.5 billion of integration and restructuring expenses primarily related to our phone business restructuring plans.

New Revenue Standard

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations.

The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. 

The new standard will be effective for us beginning July 1, 2018, and adoption as of the original effective date of July 1, 2017 is permitted. We currently anticipate early adoption of the new standard effective July 1, 2017. Our ability to early adopt using the full retrospective method is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements.

We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for software license revenue. We expect revenue related to hardware, cloud offerings, and professional services to remain substantially unchanged. Specifically, under the new standard we expect to recognize Windows 10 revenue predominantly upfront rather than ratably over the life of the related device. We also expect to recognize license revenue upfront rather than over the subscription period from certain multi-year commercial software subscriptions that include both software licenses and software assurance. Due to the complexity of certain of our commercial license subscription contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and may vary in some instances from upfront recognition. 

We currently believe the net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from the adoption of the new standard.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

            Financial Performance Constant Currency Reconciliation

 

Three Months Ended June 30,

 ($ in millions, except per share amounts)

Revenue

Operating Income (Loss)

Net Income (Loss)

Diluted Earnings (Loss) per Share

2015 As Reported (GAAP)

$22,180

$(2,053)

$(3,195)

$(0.40)

2015 As Adjusted (non-GAAP)

$22,180

$6,385

$5,067

$0.62

2016 As Reported (GAAP)

$20,614

$3,080

$3,122

$0.39

2016 As Adjusted (non-GAAP)

$22,642

$6,218

$5,484

$0.69

Percentage Change Y/Y (GAAP)

(7)%

*

*

*

Percentage Change Y/Y (non-GAAP)

2%

(3)%

8%

11%

Constant Currency Impact

$(596)

$(575)

$(764)

$(0.10)

Percentage Change Y/Y (non-GAAP) Constant Currency

5%

6%

23%

27%

* Not meaningful

 

 

 

 

Segment Revenue Constant Currency Reconciliation

 

Three Months Ended June 30,

 ($ in millions)

Productivity and Business Processes

Intelligent Cloud

More Personal Computing

2015 As Reported (GAAP)

$6,661

$6,296

$9,243

2016 As Reported (GAAP)

$6,969

$6,711

$8,897

Percentage Change Y/Y (GAAP)

5%

7%

(4)%

Constant Currency Impact

$(249)

$(215)

$(133)

Percentage Change Y/Y (non-GAAP) Constant Currency

8%

10%

(2)%

 

 

Selected Product Revenue Constant Currency Reconciliation

 

Three Months Ended June 30,

Percentage Change Y/Y (GAAP)

Constant Currency Impact

Percentage Change Y/Y (non-GAAP) Constant Currency

Office commercial products and cloud services

5%

4%

9%

Office 365 commercial

54%

5%

59%

Office consumer products and cloud services

19%

(1)%

18%

Dynamics products and cloud services

6%

1%

7%

Server products and cloud services

5%

3%

8%

Azure

102%

6%

108%

Windows OEM non-Pro

27%

0%

27%

Windows OEM Pro

2%

0%

2%

Surface

9%

0%

9%

Phone

(71)%

1%

(70%)

Search advertising excluding traffic acquisition costs

16%

1%

17%

Reconciliation of GAAP and Non-GAAP Effective Tax Rates

The following table provides a reconciliation of the GAAP and non-GAAP effective tax rates for the current quarter and current year:

 

Effective Tax Rate

Three Months Ended June 30,

Twelve Months Ended June 30,

2016 As Reported (GAAP)

7%

15%

  Net Impact from Windows 10 Revenue Deferrals

5%

4%

  Impairment, Integration, and Restructuring Expenses

3%

0%

2016 As Adjusted (non-GAAP)

15%

19%

Commercial Cloud Annualized Revenue Run Rate

Commercial cloud annualized revenue run rate is calculated by taking revenue in the final month of the quarter multiplied by twelve for Office 365 commercial, Azure, Dynamics Online, and other cloud properties.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims, or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of July 19, 2016. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070, rrt@waggeneredstrom.com

For more information, financial analysts and investors only:

Chris Suh, general manager, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center athttp://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.