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$MSFT appointed $PEP's CFO Hugh Johnston to its Board of Directors, effective immediately. He will also be the member of Board's audit committee. He will be 13th Board member of Microsoft. Additionally, the current Board member Mason Morfit will not seek re-election to the Board and his term expires at the annual shareholders meeting in November.
As part of its Healthcare NExT initiative, $MSFT partnered with Seattle-based biotech firm Adaptive Biotechnologies. Microsoft and Adaptive will build a universal blood test that will screen a person's human immune system using the former's AI and machine learning technologies. Microsoft had invested an undisclosed amount for this partnership.
$MSFT to acquire Pittsburgh-based data storage firm Avere Systems. The transaction terms were not disclosed. Microsoft believes that the addition of Avere Systems will add value to its cloud computing platform Azure and its customers. In March 2017, Avere closed a $14MM Series E funding in which $GOOG was one of the investors.
$MSFT and $SAP expand their partnership by deploying each other's cloud solutions internally. Microsoft's cloud platform Azure, which competes with $AMZN's AWS, will allow its customers to run SAP's cloud platform SAP S/4HANA. SAP SE would move its few key internal business critical systems to Microsoft Azure.
The most awaited launch from $MSFT has happened; Xbox One X. The new 4K gaming console is available across the globe in 35 markets (in U.S. for $499). Microsoft, the gaming rival of Sony and Nintendo, plans to invest more in gaming and has got strong pre-order sales for Xbox One X, which is expected to be in high demand in this holiday season.
For 2Q18, $MSFT expects revenue in Productivity and Business Processes segment to be $8.75-8.95Bil. In Intelligent Cloud, revenue is estimated to be $7.35-7.55Bil and in More Personal Computing unit revenue is targeted to be $11.7-12.1Bil. In Gaming business, revenue is expected to grow from the Xbox One console, which is set to launch in few days.
$MSFT, which eliminated the non-GAAP reporting in 1Q18 by adopting a new accounting standard, said that it performed better than expected in the large markets like France, Japan and the UK. Microsoft added that Brazil and Russia markets stabilized during 1Q18.
Revenue from Productivity and Business Processes segment, $MSFT's second largest segment, surged 28% to $8.2Bil in 1Q18 aided by LinkedIn and Office 365. LinkedIn, whose acquisition was closed in Dec. 2016, contributed $1.1Bil to the revenue and had operating expenses of $1Bil in the quarter.
$MSFT's gaming revenue was up 1% in 1Q18. Xbox software and services revenue increased 21%, while Xbox hardware revenue decreased 48%. Xbox live active users grew 13% to 53MM with continued growth across Xbox One, Windows 10, and mobile platforms.
$MSFT exceeds the $20Bil cloud annualized revenue goal set two years ago and posted higher profit in 1Q18 that was once again driven by its cloud business. Net income rose 16% to $6.6Bil and EPS grew 17% to $0.84. Revenue spiked up 12% to $24.5Bil, boosted by the hike in Productivity and Business Processes and Intelligent Cloud segments.
$MSFT and biopharma service company PAREXEL International form an alliance to help the industry accelerate drug development and bring new therapies to patients sooner. PAREXEL will use Microsoft Azure, the cloud computing platform of Microsoft.
$CRAY announced an exclusive strategic alliance with $MSFT. $MSFT and $CRAY will jointly engage with customers to offer dedicated Cray supercomputing systems in Microsoft Azure datacenters to enable customers to run AI, advanced analytics, and modeling and simulation workloads at unprecedented scale, seamlessly connected to the Azure cloud.
$MSFT reported that $SYMC will use Microsoft Azure to help more than 50MM customers who use Symantec's Norton consumer products. Symantec had developed new cloud services and migrated them to Azure. Also, Symantec will bring its e-commerce system to Azure and plans to use the Microsoft Cloud for its key internal IT services.