Microsoft earnings feel the pain from Nokia

REDMOND, Wash. - Microsoft (MSFT) reported fourth-quarter earnings after Tuesday's trading that took a hit from the Nokia devices business that it bought in April.

Net income in the three months through June 30 fell 7 percent to $4.61 billion, or 55 cents per share, from $4.97 billion, or 59 cents per share, a year ago. Adjusted for charges mostly related to Nokia, earnings was 66 cents.

Analysts polled by FactSet were expecting 60 cents per share of earnings. Microsoft shares ticked up a bit in after-hours trading on Tuesday by 0.13 percent, or 6 cents, to $44.89.

Microsoft said the absorption of the Nokia unit cut 8 cents per share from earnings but revenues got a boost from the company's ongoing shift to cloud-based software products.

Revenue rose 18 percent to $23.4 billion, although $2 billion came from the Nokia unit. That was slightly better than the $23 billion analysts were looking for.

Last week, Microsoft announced it's cutting up to 18,000 jobs, mostly related to Nokia. The acquisition of Nokia's handset business brought the number of employees up from 99,000 to 127,000. Microsoft will incur charges of between $1.1 billion and $1.6 billion over the next four quarters, including between $750 million and $800 million for severance and related benefits costs.