US firm wrote $7.5 billion off Nokia acquisition earlier this month while revenue fell five per cent to $22.1 billion
Microsoft has announced losses of $3.2 billion (£2 billion) for the three months up until June 30 after posting $8.4 billion (£5.3 billion) of writedowns.
On July 8, the US manufacturer announced plans to cut 7,800 and a $7.5 billion charge to write down the value of its Nokia phone business, bought for $7.2 billion last year.
The £2 billion net loss is the worst in the company’s history and follows a five per cent fall in revenue for the quarter, down from $23 billion in Q4 2014 to $22.18 billion.
In the same quarter last year, Microsoft posted a net profit of $4.6 billion.
Sales of software licenses to PC makers fell 22 per cent, but it saw a jump in hardware sales of its Surface tablet range, where revenue grew by 117 per cent to $888 million, and xBox games console, up 27 per cent.
“Our approach to investing in areas where we have differentiation and opportunity is paying off with Surface, Xbox, Bing, Office 365, Azure and Dynamics CRM Online all growing by at least double-digits,” saidMicrosoft CEO Satya Nadella. “And the upcoming release of Windows 10 will create new opportunities for Microsoft and our ecosystem.
“We finished the fiscal year with solid progress against our strategic priorities, through strong execution and financial discipline, which is reflected in our results for the quarter and the year,” chief financial officer Amy Hood added.