Feeds

Microsoft surprises Street with double-digit growth

Windows downturn masked by Office and giddy game gains

Boost IT visibility and business value

Amid mumblings and grumblings that it had lost its mojo, Microsoft surprised Wall Street by reporting revenues and earning for its fourth fiscal 2011 quarter that exceeded the moneymen's expectations.

"Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion," said Microsoft CFO Peter Klein in a prepared statement. "Our platform and cloud investments position us for long-term growth."

Revenue for the quarter, which ended June 30, came in at $17.37bn; analysts had expected $17.2bn, according to FactSet Research. Microsoft beat earnings-per-share predictions, as well, bringing in 69 cents a share when the analysts had predicted 59 cents.

For the full fiscal year, Redmond's revenues totaled $69.94bn, a 12 per cent increase over fiscal 2010's $62.48bn. Net income for the year was $23.15bn, up 23 per cent from the previous year's $18.76bn.

Despite this overall growth, revenue for the company's flagship Windows and Windows Live Division dropped by 1 per cent in the fourth quarter, and 2 per cent for the full year.

That slippage was more than compensated for by growth in other sectors. Revenue for the Business Division popped up by 7 per cent for the quarter and 16 per cent for the year, largely due to Office sales topping 100 million thanks to the fastest growth rate in that software suite's history. Server & Tools grew 12 per cent in the quarter and 11 per cent for the year.

The Online Services Division – read, "Bing" – grew 17 per cent in the quarter and 15 per cent year-on-year. In its statement, Microsoft asserted that Bing's search market share is now 14.4 per cent.

The star of Microsoft's 2011 growth story, however, was its Entertainment & Devices Division. Revenue in that group rose 30 per cent in the fourth quarter and a comfy 45 per cent for the full year "due to the ongoing momentum of the console, Kinect, and Xbox Live," Microsoft explained.

If only that laggardly Windows and Windows Live Division would join the party. We're assuming that Ballmer & Co. are crossing their collective fingers for that to happen with the release of the multiple-platform Windows 8. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
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.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.