Microsoft posts $10 billion quarter

Profits down

Microsoft posted its first ever $10 billion quarter, although profits were down.

"Home and Entertainment" more than doubled to $1.26 billion; Microsoft says the Xbox live service now has 750,000 users "Information Worker" revenue grew 27 per cent, helped by the release of Office 2003, to $2.89 billion in the quarter. Client revenues reached $3 billion and Server and Tools $2.1 billion. After a blip in the preceding quarter, Business Solutions revenue was up to $190 million, which in the corresponding SEC statement, Microsoft attributed to licensing of Navision products and Business Contact manager. The group also includes Great Plains and bCentral.

The MSN group grossed $546m, up 19 per cent year on year, although Microsoft says that was down to growth in paid search and an improving advertising market; MSN subscriptions were down two per cent.

But the Mobile and Embedded group continues to be the runt of the litter, bringing in $63 million, up $10 million from the previous quarter.

Microsoft expects stock-based compensation expenses to be $5.7 billion in the current quarter. ®

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