Feeds

Windows growth keeps Microsoft earnings relatively stable

Quarterly profits slip slightly

Boost IT visibility and business value

Microsoft's latest quarterly financial results are a mixed bag: good performance from the Windows division, but overall profits down slightly.

Redmond's revenues for the quarter are $21.46bn, with an operating income of $7.77bn and profits of $6.38bn – which, while down nearly 4 per cent, is still a sizeable chunk of change.

All eyes are on the Windows division to gauge the impact of the new operating system launch, and Microsoft reported revenues of $5.88bn, up 24 per cent on the year and up 11 per cent in the last quarter. There's no change on the "60 million Windows 8 licenses sold" data, although Microsoft did say it pre-sold $783m worth, including upgrades.

"Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers," said CEO Steve Ballmer in a statement.

"With new Windows devices, including Surface Pro, and the new Office on the horizon, we'll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need."

Microsoft's Server and Tools division did well, up 9 per cent on the year at $5.19bn, which Microsoft said was down to "double-digit" growth in SQL Server and System Center.

The Business division did less well, down 10 per cent on the year at $5.69bn, but up 3 per cent on the quarter. Lync, SharePoint, and Exchange are reporting strong growth, which indirectly says a lot about fortunes of the basic Office suite.

Bing advertising revenue is up 15 per cent on the year, but overall the Online Services division revenues fell 11 per cent, a negative figure the Entertainment division's revenues shared. Entertainment revenue was down 2 per cent on the quarter, but Microsoft reasserted that it's still the top selling console in America – USA!

On the mobile front, where Microsoft faces tough competition from Android, Apple, and a possibly resurgent RIM, Redmond was the model of tact. "During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices," is the solitary mention of the platform in the release.

A full conference call on the results will be webcast at 2:30pm PST (12:30am UTC). ®

Maximizing your infrastructure through virtualization

More from The Register

next story
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
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
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.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.