For 2Q16, $SPLS expects sales to decrease versus 2Q15. Diluted non-GAAP EPS is expected to be $0.11-0.13 in 2Q16. For FY16, company expects to generate about $600MM of free cash flow. $SPLS plans to close at least 50 stores in North America in 2016.
$MSFT said that with the company's annuity mix as high as it is, it can impact the uptick in the transactional business either way. The company's focus will always be making sure it has a clear road map for customers to make long term commitments through annuity.