Microsoft Reports Record Quarterly Revenues

Microsoft on Thursday reported its financial results for the quarter ending March 31, posting a net profit of $5.11 billion on revenues of $17.41 billion, the latter of which is a record and a 6 percent increase year over year. Best of all for the software giant, Windows-related revenues were up 4 percent after a few flat and down quarters.

“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said Microsoft CEO Steve Ballmer. “With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead.”

Once again, the Microsoft Business Division, which is responsible for Microsoft Office, was the strongest in the company. It reported revenues of $5.81 billion in the quarter, up 9 percent year over year. Office 2010 was praised for its “continued strength” with businesses and consumers, though it too will soon be replaced by a new version, code-named Office 15.

The division responsible for Windows rebounded with revenues of $4.62 billion—a 4 percent increase from the prior year period.  Microsoft says that Windows 7 adoption in the enterprise is “strong,” with the OS now installed on 40 percent of corporate PCs worldwide.

Microsoft’s Server and Tools business posted revenues of $4.57 billion, a 14 percent increase, thanks to double-digit revenue growth for SQL Server and over 20 percent revenue growth for System Center.

The one bit of bad news came from Microsoft’s Entertainment & Devices Division, which is responsible for the Xbox 360. This division saw a 16 percent decrease in revenues to $1.62 billion, reflecting the “soft gaming market.” This is a topic I’ve written about a lot recently: Yes, Microsoft’s Xbox 360 is outselling the other consoles, but the market as a whole has been in a funk for some time now.

And though Online Services posted an operating loss of $300 million, an ongoing concern, its $707 million in revenues represented a 6 percent jump year over year. 

TAGS: Windows 8
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