Microsoft today announced that revenues for the quarter that ended March 31 grew to $21.7 billion. Net income, however, was a bit less than expected, coming in at $5 billion -- a 12 percent drop from the same quarter a year ago. These financial results include $190 million of integration and restructuring expense related to Microsoft's turnaround plan, and the ongoing integration of the Nokia Devices and Services business.
Devices and Consumer revenue grew eight percent to $9 billion. Office 365 Consumer subscription income increased to $12.4 billion, with search advertising revenue climbing 21 percent. Xbox Live usage grew 30 percent, with revenue from the Surface tablet growing 44 percent. Xbox division revenue, including the company's game studios as well as Xbox hardware and peripherals, was down 24 percent year-over-year.
The company's new phone division, built on the foundation of its Nokia acquisition, posted revenue of $1.4 billion, with 8.6 million Lumia phones sold. The company did disclose that it does not plan to release any new phone hardware until Windows 10 ships later in the year.
Commercial cloud revenue grew 106 percent, driven by subscriptions to Office 365. Server products and service revenue grew 12 percent, with Windows volume licensing declining two percent.