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Showing posts with label Microsoft Revenues. Show all posts
Showing posts with label Microsoft Revenues. Show all posts

October 24, 2011

Microsoft Empire Bouncing Back

Finally there seems to be  some Good news for Microsoft! Online operations only lost $494 million this quarter.

Microsoft reported another strong if unspectacular quarter, with revenue of $17.37 billion (ahead of expectations of $17.26 billion) and EPS exactly in line with targets at $0.68.

On the earnings call, the company said that Office is pulling through other products,particularly Lync (the company's corporate IM and messaging product), which was up 25% from last year. 

Microsoft also said that business PC sales were pretty good, with revenue up 5%. Consumer sales were flat, but that's mostly due to netbooks disappearing (or being eaten by the iPad). If you ignore netbooks, sales of "traditional" PCs were up about 14%.
Also, Microsoft has decided that Skype will be counted in the Entertainment & Devices segment, alongside Xbox and Windows Phone, suggesting that it's going to be integrated into those products first.
And in a welcome reversal from recent quarters, the Online division (Bing and MSN) actually CUT its losses from last year, to only $494 million during the quarter (down from $558 million last year). At least it's moving in the right direction now.

Here's how the business did against expectations:

·         Revenue: $17.37B vs. $17.26B expected

·         EPS: $0.68 vs. $0.68

·         Windows: $4.87B revenue (+2% from last year) vs. $5.0B

·         Business Division (mostly Office): $5.62B (+8% organic*) vs. $5.4B

·         Server & Tools: $4.25B (+10%) vs $4.3B

·         Entertainment & Devices (Xbox): $1.96B (+9%) vs. $1.9B

·         Online (Bing & MSN): $625m (+19%) vs. $610m

Unearned revenue: $15.67B vs. $15.7B. This is an important metric because it shows how well Microsoft is doing selling long-term contracts to big businesses.

*Microsoft moved the Forefront security products from Server & Tools to the Business Division, adding about $100 million in revenue. The 8% growth doesn't count that revenue