Microsoft Profits Jump 60% - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Applications

Microsoft Profits Jump 60%

The software maker roars past Wall Street estimates on the back of robust Windows 7 demand.

Microsoft on Thursday said strong sales of its new Windows 7 operating system helped propel the company to record revenue in its fiscal second quarter.

Revenues rose 14% compared to the same period a year ago, to $19.02 billion. Net income jumped 60% to $6.6 billion, while earnings per share climbed 57%, to 74 cents. Wall Street analysts polled by Thomson Reuters were, on average, expecting EPS of 59 cents.

"Exceptional demand for Windows 7 led to the positive top-line growth of the company," said Microsoft CFO Peter Klein, in a statement. "Our continuing commitment to managing costs allowed us to drive earnings performance ahead of revenue growth," said Klein.

Sales of Windows and related products rose 29%, to $5.1 billion, while sales of server software increased 19%, to $3.8 billion.

Still, Microsoft saw weakness in some of its lines during the quarter, which ended Dec. 31.

Sales of Microsoft Office were down 2.9%, and revenue from online services, such as advertising, fell 2.3%, to $581 million. Xbox and related entertainment sales were also down, declining 9.7%, to $2.9 billion.

Microsoft said it shipped 5.2 million Xbox 360 consoles during the quarter, compared to 6 million shipped in the previous year's period.

Overall, Microsoft executives said they were pleased with the performance of Windows 7, which debuted Oct. 22.

"This is a record quarter for Windows units," said chief operating officer Kevin Turner. "We are thrilled by the consumer reception to Windows 7 and by business enthusiasm to adopt Windows 7," said Turner.

Microsoft shares were up 1.54%, to $29.61, in after hours trading Thursday.

Application mobilization tools are both more effective and more confusing than ever. To develop this report, InformationWeek Analytics polled nearly 700 business technology professionals and interviewed mobile application experts. Download the report here (registration required).d

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Commentary
Six Inevitable Technologies and the Milestones They Unlock
Guest Commentary, Guest Commentary,  10/3/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Data Science and AI in the Fast Lane
This IT Trend Report will help you gain insight into how quickly and dramatically data science is influencing how enterprises are managed and where they will derive business success. Read the report today!
Slideshows
Flash Poll