Microsoft to Modify Results-Reporting Method

Microsoft, the world’s leading producer of software, said it will modify the method in which it reports its financial results to correspond with a restructure of its business unit that the company first announced in September, The Wall Street Journal reports.

Microsoft said that upward of $2 million in revenue was transferred from one business unit to another when the restructuring became effective at the beginning of July, the start of the current fiscal year, according to the Journal.

Chris Liddell, Microsoft chief financial officer, spoke to a handful of analysts and investors and told them the company will report its last quarterly results using the current system including seven operating units on Thursday, though he did not provide further comment on the fourth-quarter financials, the Journal reports. 

Beginning with the new fiscal year, Microsoft will break its results down into five business units instead of seven: the client unit, server and tools unit, online services unit, the business arm, and entertainment and devices, according to the Journal.

Redmond, Wash.-based Microsoft changed its results-reporting process to boost its decision-making capabilities and to better position it for competition with Web heavies like Google and others that provide Internet-based services, the Journal reports.

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