Feeds

Microsoft cautious despite record quarter

Ker-ching!

  • alert
  • submit to reddit

High performance access to file storage

Despite posting a $10bn quarter, Microsoft offered a more cautious outlook for the next three months.

The company took a profit of $2.99bn from its Q4 2005 period, down slightly from the corresponding period last year, after accounting for $756m in antitrust related legal charges. Total revenue was $10.16bn

All segments grew, but executives seemed most pleased with a 22 per cent increase in the small Home and Entertainment division, mostly related to the Xbox. Xbox2 will ship before Xmas.

Server and tools profits jumped from $608m a year ago to $800m in this quarter. But the two big cash cows were comparatively steady, and Office-related profits actually fell year-on-year. Client profit was comparatively steady at $2.175bn. while the "Information Worker" group recorded $1.997bn in operating income, down from $2.022bn a year ago.

The server, Windows and Office groups account for 84 per cent of Microsoft's revenue and the vast majority of its profits, since the only other group in the black is MSN.

For the year, Microsoft recorded revenue of $39.78bn and a profit of $14.56bn. The company listed its assets at $70bn, down from $94bn, reflecting the $44bn Microsoft has spent on dividends and share buybacks. For Q1 2006, Microsoft said it expected earnings to be slightly lower, between $9.7bn and $9.8bn.®

Related stories

MS buys FrontBridge, buys into Finjan
Microsoft does well in third quarter
Microsoft halves R&D spending, posts record profits

High performance access to file storage

More from The Register

next story
Windows 8.1, which you probably haven't upgraded to yet, ALREADY OBSOLETE
Pre-Update versions of new Windows version will no longer support patches
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
OpenSSL Heartbleed: Bloody nose for open-source bleeding hearts
Bloke behind the cockup says not enough people are helping crucial crypto project
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Windows XP still has 27 per cent market share on its deathbed
Windows 7 making some gains on XP Death Day
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
US taxman blows Win XP deadline, must now spend millions on custom support
Gov't IT likened to 'a Model T with a lot of things on top of it'
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.