Feeds

Xbox dearth takes edge off Microsoft's record quarter

Big sales everywhere else

Website security in corporate America

A shortage of components for the Xbox 360 took some of the shine off Microsoft's record second-quarter business results.

Revenue came in below Wall St expectations at $11.83bn - analysts had anticipated $11.93bn - for the period to December 31, the all-important holiday shopping season.

Microsoft sold 1.5m Xbox 360 consoles, lower than expected due to the parts shortage. The company also cut its forecast for units sold during the first 90 days to 2.5m, down from an expected three million, due to capacity constraints.

Problems meant the Xbox business lost $293m compared to a $55m profit for the same quarter the previous year. Soleil Securities analyst Jamie Friedman said. Microsoft had failed to meet even his reduced expectations and lost more money on the Xbox than he'd expected.

Despite these problems, an upbeat Microsoft promised analysts it would hit its previously promised sales targets of 4.5m to 5.5m for the full year. "We believe this is a short-term manufacturing challenge," Microsoft said.

Supply and manufacturing on the Xbox was the one black spot in an otherwise predictably glorious quarter. Microsoft announced a 5.4 per cent jump in income to $3.65bn on a 9.44 per cent jump in revenue to $11.83bn, the highest quarterly revenue in its 30 year history.

Driving revenues were server and tools and the PC client business, with strong sales in Visual Studio 2005 and Dynamics Customer Relationship Management (CRM) that were both launched during the quarter. Microsoft Business Solutions (MBS) - home of Dynamics CRM - and Mobile and Embedded hit profitability for the first time. MBS scored $10m operating income, with the mobile unit on $20m.

Separately, Microsoft refused to confirm reports that Office 12 has been formally christened Office 2007. A company spokeswoman said Microsoft had not yet picked a name. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.