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Friday, July 23, 2010
Windows 7 Drive Microsoft's Growth


Microsoft today announced fourth-quarter revenue of $16.04 billion for the quarter ended June 30, 2010, a 22% increase from the same period of the prior year.

Operating income, net income and diluted earnings per share for the quarter were $5.93 billion, $4.52 billion and $0.51 per share, which represented increases of 49%, 48% and 50%, respectively, when compared with the prior year period.

"This quarter?s record revenue reflects the breadth of our offerings and our continued product momentum," said Peter Klein, chief financial officer. "The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion."

Product momentum continued during the quarter with the successful launch of Office 2010 and strong performance from existing products including Windows 7, which has sold more than 175 million licenses to date, Windows Server, Xbox, and Bing, which achieved its 13th consecutive month of share gain.

"We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2010," said Kevin Turner, chief operating officer. "Our transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and we look forward to continuing our product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox Kinect."

As of today ? Windows 7 is now running on more than 16% of all PCs worldwide, according to Microsoft, making it the fastest selling operating system in history. In addition, IE8 is now the fastest growing and most popular web browser in the market and the IE9 is also coming.

This strong momentum isn't limited to Microsoft. Last week we highlighted a recent IDC press release that illustrated the growth of the global PC market - more than 22.4% year-over-year for the second quarter of 2010. Intel reported its best quarter ever with second quarter revenue up 34% year-over-year. And AMD reported a whopping 40% growth year-over-year in its earnings release, due to record sales of their chips for notebook computers.

For the fiscal year ended June 30, 2010, Microsoft reported record revenue of $62.48 billion, a 7% increase from the prior year. Operating income, net income and diluted earnings per share for the year were $24.10 billion, $18.76 billion and $2.10, which represented increases of 18%, 29% and 30%, respectively, when compared with the prior year.


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