Feeds

Microsoft feasts on Vista coupons for record quarter

Profits up 65 per cent

Build a business case: developing custom apps

Microsoft posted a 65 per cent boost in its third-quarter net income thanks in large part to revenue from major new releases and upgrade coupons that promoted them. Both profit and sales for the period that ended in March surpassed analyst estimates.

Shareholders welcomed the results by driving shares up almost five per cent in extended trading. They had already risen 11 cents, or about 0.4 per cent in regular trading before the results were released. With Microsoft in the midst of two major product releases, investors have been eager for signs how Vista and Office 2007 are faring.

"We are delighted with the positive customer response these products have received," Microsoft Chief Operating Officer Kevin Turner said in a statement. There was no mention from Redmond of Dell's recent move to sell PCs running Windows XP due to customer complaints about the new OS.

Profit was $4.9bn, or 50 cents a share, compared with about $3bn or 29 cents in the same period last year. Sales grew 32 per cent to $14.4bn from $10.9bn.

Analysts on average had forecast profit of 46 cents on revenue of $13.9bn.

About $1.7bn of revenue, or 12 cents profit, actually came from the previous quarter when computer buyers snapped up coupons allowing them to upgrade to Vista and Office 2007 once they were released in January.

Microsoft forecast earnings for fiscal 2008, ending in June of next year, of $1.68 to $1.72 on revenue of $56.5bn to $57.5bn, well within the range of analyst expectations. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.