Boston, MA 07/25/2014 (wallstreetpr) – In yet another leap, taking a cue from International Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT) has set up a Quantum Computing research facility named Station Q in the University of California, Santa Barbara Campus. The Station Q has been equipped with talent from various academic circles such as mathematicians, physicists, scientists and researchers. The quantum technology involves use of both the binary numbers 1 and 0 without interdependence which is not the case with present computing world where binary numbers are dependently used in the form of bits.
The Nokia Dilemma
Microsoft Corporation (NASDAQ:MSFT) completed the $7 million acquisition of the handset division of Nokia last quarter. Analysts state that though Microsoft saw increase in revenues, Nokia might have eaten into its profits. On a year to year basis, the Microsoft revenues were up by 18% to $23.4 billion of which was $2 billion only contribution from Nokia. However, Nokia acquisition took away about $0.08 a share from the profits. CEO Nadella seems satisfied with sale of low end cheaper Lumia Nokia handsets but expects boost in higher end Lumia which it hopes to strengthen with news apps and services such as windows instead of androids.
The Restructuring Process
In an effort to reshape and build a competitive Microsoft Corporation (NASDAQ:MSFT), CEO Nadella announced 18K layoffs on 17 July, 2014. A major chunk of it would be 12.5K employees of the Nokia Corporation (ADR) (NYSE:NOK) it acquired last year. The process would be of integrating Nokia into Microsoft’s business and restructuring to work in more efficient teams. The change would cost the company about $1.6 billion. In spite of the 14% cut announced in work force, Microsoft stock rose to $44.53 on July 18, 2014, highest reached one since the year 2000. Analysts believe it is a correction long pending in the legacy left by the previous CEO Steve Ballmer.
Support from the New Government
The Chairman of Microsoft (INDIA), Pramanik, India has recently called upon the Chief Minister of the state and also met the Information Technology Minister to discuss the potential plans of the new government in the direction of building vibrant IT sector. The government of the newly formed Telangana State of India is more than happy for the same and assured the Chairmen all support.
