Microsoft reported a $3.2 billion quarterly net loss, its biggest ever, as the company wrote down its Nokia phone business.
It was not all Steve’s fault, demand fell for its Windows operating system too, but that would be normal just a couple of weeks out from launching a new one.
The company took a charge of $7.5 billion in the fourth quarter related to restructuring its Nokia handset business, which it bought last year.
Chief Executive Satya Nadella has been moving to software and cloud services as demand for PCs slows.
Sales of Windows to computer manufacturers to install on new PCs fell 22 percent in the quarter.
The company is scheduled to roll out Windows 10 on July 29 which is expected to claw back the ground Microsoft lost to its Windows 8.
Microsoft wants to make revenues by building search and gaming into the Windows 10, Chief Financial Officer Amy Hood said in April.
Bing will be profitable in the year ending June 2016, Hood said.
Sales of Windows to businesses fell 21 percent from the year earlier quarter, when demand for the operating system had surged after Microsoft cancelled support for Windows XP.
Revenues from Microsoft’s commercial cloud business, which includes offerings such as Office 365 and Azure, rose 96 percent, excluding the impact of a strong dollar.
Microsoft said it added three million subscribers for Office 365 in the quarter, taking the total number of subscribers for the product to 15.2 million at the end of June.
Microsoft reported a net loss of 40 cents per share for the quarter ended June 30. The company had posted net income of $4.61 billion a year earlier.
Microsoft also took a charge of $940 million related to job cuts announced this month and last year. Revenues fell five percent to $22.18 billion.