Microsoft's fourth-quarter earnings were 6 percent short of the estimates, allegedly due to the US$7.2 billion Nokia acquisition, Business Journal reported.

The company's financial statements showed that its net income until June 30 was US$4.6 billion or 55 cents per share, including Nokia-related adjustments, it went down from last year's net income of US$4.9 billion, or 59 cents per share.

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Microsoft CEO Satya Nadella said the company is cutting cost after their April acquisition of Nokia.

Nadella is facing challenges on how the newly acquired mobile-operator can help Microsoft with its mobile effort and expand the software company's reach toward mobile users.

Microsoft chief financial officer Amy Hood said Nadella will be cutting more costs and will prioritize the important areas in repositioning the company and energizing it.

Hood added that Microsoft is putting its efforts to make other Microsoft-related products, such as Bing and MSN websites, be more profitable by 2016.

Microsoft plans to discontinue some products that have not been producing good profit. The company adds that it might cut 18,000 jobs as they incorporate Nokia.

Meanwhile, Microsoft's quarterly revenue, exceeded the company's estimated $23 billion earnings per share, when they reported actual revenue of $23.38 billion. The quarter's revenue is 15 percent more than the company's $19.9 billion revenue last year.

The reported revenue for the fiscal year also topped estimates when the company posted a total revenue of US$86.8 billion. It is 11 percent higher than last year's revenue of US77.8 billion and almost 1 percent more than the estimated revenue of US$86.5 billion.

Tagsloss, financial results, Acquisition, profit, Operating System, IT industry