Microsoft Reports Record Revenue But Lower Profits In Second Quarter
Microsoft reported a dip in fiscal second-quarter profit on Thursday despite the solid start for its new Windows 8 operating system, mainly due to lower sales of the Xbox 360 and Office.
Microsoft announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income, net income, and diluted earnings per share for the quarter were $7.77 billion, $6.38 billion, and $0.76 per share.
"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 Steve Ballmer, chief executive officer at Microsoft. "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."
The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Microsoft said it has sold over 60 million Windows 8 licenses to date. Microsoft did not detail sales of its new Surface tablet - a direct competitor to the iPad - although chief financial officer Peter Klein said the company was expanding production and distribution.
The Server & Tools business reported $5.19 billion of revenue, a 9% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.
The Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. evenue from Microsoft's productivity server offerings - collectively including Lync, SharePoint, and Exchange - continued double-digit percentage growth.
The Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.
The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.
"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 Steve Ballmer, chief executive officer at Microsoft. "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."
The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Microsoft said it has sold over 60 million Windows 8 licenses to date. Microsoft did not detail sales of its new Surface tablet - a direct competitor to the iPad - although chief financial officer Peter Klein said the company was expanding production and distribution.
The Server & Tools business reported $5.19 billion of revenue, a 9% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.
The Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. evenue from Microsoft's productivity server offerings - collectively including Lync, SharePoint, and Exchange - continued double-digit percentage growth.
The Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.
The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.
