Microsoft Earnings: Record Overall Revenues but Slight Dip in Windows

As expected, Microsoft announced record revenues of $21 billion for the quarter ending December 31, 2011, a 5 percent improvement over the same quarter a year earlier. The company pocketed 6.62 billion in net income. But as was also expected, most analysts seem to be focused on the fact that the quarter was a relative bust for the Windows Division, which posted a 6 percent year-over-year decline with still-strong revenues of $4.74 billion.

What these naysayers will overlook: Microsoft announced that it has sold 525 million licenses to Windows 7 since its October 2009 launch. That means the company is still selling more than 20 million copies of the OS every month. That's been the case consistently since the company first started reporting sales figures for the OS.

Still, Microsoft already seems to be looking ahead to the next release of its flagship OS, Windows 8, which the company confirmed would ship in 2012.

"We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services," said Microsoft CEO Steve Ballmer. "Coming out of the Consumer Electronics Show, we're seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro-style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012."

Aside from the Windows Division, Microsoft's other businesses generally performed strongly in the quarter. The Microsoft Business Division reported revenues of $6.28 billion, up 3 percent, and Microsoft reported that it has now sold more than 200 million licenses to Office 2010. Server & Tools posted revenues of $4.77 billion, up 11 percent. And Online Services saw a 10 percent revenues bump to $784 million. 

Entertainment & Devices Division jumped 15 percent to $4.24 billion in revenues. Microsoft said it sold 8.5 million Xbox 360 consoles in the quarter and now has more than 40 million Xbox LIVE subscribers, up 30 percent year over year. It has sold more than 18 million Kinect sensor add-ons for the Xbox 360, as well.
TAGS: Windows 8
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