Bolstered by growth in cloud computing and its corporate software units, Microsoft (MSFT) on Wednesday reported revenue for its second quarter that exceeded Wall Street estimates. Still, a tax charge prompted the company to report a huge quarterly loss.
The software maker relayed a $13.8 billion charge due to taxes owed on cash overseas, the outcome of changes in the tax law. That caused the company to report a net loss of $6.3 billion, or 82 cents a share, in the period ending Dec. 31, versus a profit of $6.27 billion, or 80 cents a share, the prior year.
The company said revenue rose 12 percent to $28.92 billion.
Microsoft hasn't said whether it would repatriate its foreign income following tax legislation passed in December that got rid of rules that had allowed companies to defer U.S. income taxes on foreign earnings until the income came back to the U.S.
Microsoft shares were down around 1.5 percent, or $1.39, to $93.62 in after-hours trading in the wake of its results.