SAN DIEGO, CALIF. (TheStreet) -- Microsoft ( (MSFT) - Get Microsoft Corporation Report ) shares surged in after-hours after the company posted earnings that were better than expected for its fiscal year first-quarter, its first three-month period of results impacted by CEO Satya Nadella's overhaul strategy.
Redmond, WA.-based Microsoft earned an adjusted 54 cents a share on $23.20 billion in revenue, compared to Thomson Reuters estimates of 50 cents a share on $22 billion in revenue. The results beat estimates despite $1.14 billion in integration and restructuring expenses, which amounted to a negative impact on earnings of 11 cents per share, Microsoft said.
"We are innovating faster, engaging more deeply across the industry, and putting our customers at the center of everything we do, all of which positions Microsoft for future growth," Nadella said in a statement. "Our teams are delivering on our core focus of reinventing productivity and creating platforms that empower every individual and organization."
Microsoft's devices and consumer revenue grew 47% to $10.96 billion over the year ago quarter. Commercial revenue, which includes cloud, server, and Windows volume licensing products, amounted to $12.28 billion in revenue. The company said that revenue from phone hardware totaled $2.6 billion in the quarter, and it sold 2.4 million Xbox consoles.
Microsoft's fiscal year first quarter was an eventful one. In July, Nadella announced a massive restructuring effort, including as many as 18,000 job cuts, to integrate the Nokia Devices and Services division, and focus the business around becoming a "productivity and platform company for the mobile-first and cloud-first world." In the quarter, expenses associated with the company overhaul cost investors 11 cents per share.
The company also announced that it was acquiring Mojang, the developer behind gaming sensation Minecraft, for $2.5 billion. The deal is expected to close later this year.
The company ended its fiscal first quarter with $6.3 billion in cash and cash equivalents.
Microsoft closed Thursday at $45.02 -- shares were rising more than 3% to $46.50 in after hours trading.
--Written by Jennifer van Grove in San Diego, Calif.
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