Feeds

Microsoft cruises in Q1

Ups forecast on rosy server revenues

  • alert
  • submit to reddit

Top three mobile application threats

Microsoft continued to pump out plenty of cash in its core businesses and managed to cut losses in underperforming units during its first quarter.

The software maker posted $9.2bn in revenue during the period - a rise of 12 per cent over last year's Q1 revenue total of $8.22bn. As always, Microsoft cleared a handsome profit as well, generating net income of $2.9bn. In the same period last year, Microsoft reported net income of $2.6bn.

The company pointed to particular gains with its server and desktop efforts as drivers of the revenue growth. Its Server and Tools business, which includes Windows Server, SQL Server and Exchange Server, increased revenue by 19 per cent to $2.2bn. Microsoft's client software business posted revenue of $3bn versus $2.8bn last year. Its other big money maker - the Information Worker segment (which includes Office) - rose 14 per cent to $2.6bn in revenue. MSN grew about 10 per cent to $540m, Mobile and Embedded Devices (which includes software for phones and PDAs) grew to $69m from $53m and Home Entertainment (which includes the Xbox) grew to $632m from $581m.

"We've had a strong beginning to what we expect will be a very good year with continued growth in both our commercial and consumer businesses," said John Connors, CFO at Microsoft. "This quarter we had a very healthy commercial server and desktop business driving double digit revenue growth, and we expect to continue the trend of growing revenue faster than expenses as we work to make each of our businesses more efficient and profitable."

Microsoft's Business Solutions, Mobile and Embedded Devices and Home and Entertainment groups remained unprofitable, although each unit cut its losses.

Microsoft expects second quarter revenue to come in between $10.3bn and $10.5bn. It also raised the full year revenue forecast to be between $38.9bn and $39.2bn - up from an earlier prediction that topped out at $38.8bn. ®

Related stories

Grand Theft Auto sequel leaked onto web
Gates: PC will replace TV, TV will become a giant Google
Microsoft mocks software rivals with dual-core chip embrace
Microsoft moves in on music downloads
Linux, the pirate's friend, says Gartner

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.