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Microsoft pulls in record Q2

Deferred revenue? What deferred revenue!

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Microsoft drummed up record revenues in the December quarter - its fiscal Q2 - and could have done even better if it hadn't squirreled away some of its sales to 'recognize' in Q3.

The company today announced Q2 revenues of $12.54bn, six per cent up on last year, and net income of $2.63bn - a 28 per cent drop. But it deferred $1.64bn to account for Vista and Office upgrade coupons given to PC makers to dish out to their customers, which are expected to be redeemed in Q3. Without this set aside, revenues would have been 14 per cent higher than last time.

Microsoft forecasts Q3 revenues of of $13.7bn -$14bn, which includes the revenue recognition from Q2. ®

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