Business

Microsoft CFO Amy Hood: ‘We know we have to do better’

Above: Microsoft CFO Amy Hood.

Image Credit: Microsoft

Microsoft might have had a bad fourth quarter with missed earnings and a $900 million write-off on its Surface RT tablets, but at least it’s not trying to shrug it off.

“We know we have to do better and this is one reason we made the strategic and organizational changes last week,” Microsoft chief financial officer Amy Hood said today during its Q4 earnings conference call. “We are confident we are moving in the right direction.”

Last week, Microsoft made some sweeping changes to its organizational structure. It essentially promoted just a few employees to powerful new roles, including Terry Myerson, who will lead all OS development for Windows, Windows Phone, and Xbox; and Julie Larson-Green, who will head hardware and entertainment.

Hood said Microsoft will host an event targeting analysts in September to discuss how the company will change its reporting of its business divisions due to the changes.

In regard to the huge $900 million charge, this is because Microsoft reduced Surface RT inventory prices by $150 per unit and RT tablet “inventory adjustments.” Hood said the $150 discount on RT tablets will make it more attractive to consumers.

“We believe this price decrease will accelerate surface RT adoption and position us for better success,” Hood said.


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