Microsoft quarter rescued by Microsoft Office

Xbox and enterprise software saved Microsoft from sluggish PC sales in its third fiscal quarter

Microsoft enjoyed strong income and revenue growth for its third fiscal quarter despite sluggish PC sales, with Xbox and Office doing well, the company reported Thursday.

For the quarter that ended March 31, Microsoft reported net income of $US5.23 billion, up 31 per cent from the same period last year. Third-quarter revenue was $16.43 billion, a jump of 13 per cent. Diluted earnings came in at $0.61 per share, up 36 per cent.

"We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," Microsoft Chief Financial Officer Peter Klein said in a statement.

Overall, Windows 7 revenue shrank by approximately four per cent when compared to the same time last year, from $4.6 billion to $4.4 billion. The company attributed this slackening of demand to sluggish PC sales.

Other business units made up the difference, however. Buoyed by strong Microsoft Office sales, the Microsoft business division generated more revenue than the Windows unit this quarter. It generated $5.2 billion, a jump of 21 per cent from last year's $4.3 billion.

Entertainment and devices division revenue grew by 60 per cent, coming in at $1.9 billion this quarter, up from $1.2 billion a year ago, owing to strong sales of the Xbox, the Xbox live service and the Xbox Kinect controller.

Server and tools division revenue grew by 11 per cent, to $4.1 billion from last year's $3.7 billion, thanks to continued demand for Windows Server 2008 R2, SQL Server 2008 R2 and other products and services.

Shareholders are receiving a bonus this year of $0.05 per share, thanks to an audit settlement with the U.S. Internal Revenue Service that covered the tax years 2004 to 2006.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesMicrosoftfinancial results

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

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?