Microsoft earnings again buoyed by Windows 7

Microsoft said its new OS has been installed on 10 percent of the world's PCs

Windows 7 has once again kept Microsoft's balance sheet healthy. On Thursday, the company announced strong income and revenue growth for its third fiscal quarter, thanks in part to continued brisk sales of the new OS.

For the quarter ended March 31, Microsoft reported net income of US$4.01 billion, up 35 percent from the same period a year prior. Third-quarter revenue was $14.5 billion, a jump of 6 percent. Earnings came in at $0.45 per share, beating analysts' expectations by $0.03 per share, according to a poll by Thomson Reuters.

As in the previous quarter, Windows 7 provided much of the boost needed to achieve the positive numbers, Microsoft Chief Financial Officer Peter Klein said in a statement. He also pointed to the company's Bing search, Xbox Live and emerging cloud services as areas of growth.

Overall revenue from Windows sales was up 28 percent compared to the same period a year earlier. Microsoft took the opportunity to note that 10 percent of PCs worldwide are now running Windows 7.

The Windows & Windows Live Division pulled in $4.41 billion in revenue for the quarter, up sharply from $3.45 billion a year earlier. Other divisions reported more modest gains: The Server and Tools group pulled in $3.57 billion, up from $3.49 billion last year; Entertainment and Devices was up slightly at $1.66 billion, from $1.63 billion a year earlier; and Online brought in $566 million, up from $507 million.

Only the Business Division did not report a gain, reporting revenue of $4.24 billion, down from $4.5 billion a year earlier.

The quarterly results factor in $305 million of deferral of revenue related to the Microsoft Office 2010 Technology Guarantee program, which promises Office 2007 customers free upgrades to Office 2010 when that software is released.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Microsoftfinancial resultsWindows 7

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Most Popular Reviews

Deals on Good Gear Guide

Deals on Good Gear Guide

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.


Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?