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Microsoft Reports Record Q2 Results
Microsoft has reported revenues of $19.02 billion for the second quarter ended Dec. 31, 2009, which the firm says is a 14 per cent increase from the same period last year.
Operating income, net income and diluted earnings per share for the quarter were $8.51 billion, $6.66 billion and $0.74 per share, which represented increases of 43 per cent, 60 per cent and 57 per cent, respectively, when compared with the prior year period.
The results include the recognition of $1.71 billion of deferred revenue, an impact of $0.14 of diluted earnings per share, relating to the Windows 7 Upgrade Option Program and pre-sales of Windows 7 to OEMs and retailers before general availability.
"Exceptional demand for Windows 7 led to the positive top-line growth for the company," said Peter Klein, chief financial officer at Microsoft. "Our continuing commitment to managing costs allowed us to drive earnings performance ahead of the revenue growth."
Windows 7 and Windows Server 2008 R2 launched globally on October 22. Through the second quarter, Microsoft sold over 60 million Windows 7 licenses, making it the fastest selling operating system in history it says.
"This is a record quarter for Windows units," said Kevin Turner, chief operating officer at Microsoft. "We are thrilled by the consumer reception to Windows 7 and by business enthusiasm to adopt Windows 7."
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Copyright 2006 - 2009 Future Publishing Limited, Beauford Court 30 Monmouth Street Bath, UK BA1 2BW
England and Wales company registration number 2008885
No-one has been on here to complain about a Windows OS yet? Maybe thats because Windows 7 is actually very good (been using it since the RC in May 2008 and don't plan to change in a hurry). It is what Vista should have been and turning on my work PC and having to use XP seems like going back in time. If anyone is still undecided I seriously urge them to ditch XP and especially Vista and make the move over. But make sure you install Firefox as IE8 is still the pile of dogpoo IE has always been.
I do not believe Windows Seven is 'that' great. When you use a Mac you kind of can tell the difference. I personally use Linux and it is great not to worry about firewalls, slowdowns, bugs, anti-virus protections etc and the Mozilla Firefox Browser I am using is great. I used to use Windows before (Who did not? since they were pretty much forced into it!) but now having made the switch its been the best PC experience for me. If I was to upgrade in the future it would be Mac or a Google OS Netbook. It is hard to contemplate going back to Microsoft.
Yep, Windows 7 is solid and MS is benefitting financially as a result. I don't mind IE, but I agree it is buggier than such a mature product should be at this stage. My wife uses and enjoys Firefox, but I'm too comfortable with IE to bother switching.
Some other interesting quotes (from Gamasutra):
"Entertainment and Devices Division, a larger division that includes the Xbox 360, Games for Windows, and Zune, managed to triple its profits even as revenue fell."
And "Specifically, Microsoft said its cost of revenue decreased 23 percent to $478 million, thanks to lower hardware costs for Xbox 360. However, that was partially counterbalanced by the company paying out greater amounts in Xbox Live royalties. Marketing spend went down by $75 million, and R&D expenses went down by $50 million."
Reduced R&D spending adds credence to the statements by MS that it has decided to extend the life of 360 and delay their next offering - either that or they're done with the bulk of the R&D for the next box.
Nah, this is just some creative bookkeeping designed to prop up their laughable ongoing 'Xbox is a successful business' fallacy. I'm sure that even now Greenby is composing ridiculous puffed-up soundbites about their 'profitable quarter.'
Sigh. Why is it so hard for you to understand this business model? A system with such a high attach rate is going to be profitable whether you like the company or not. The money is made overwhelmingly on software and 360 moves software exceedingly well.
You lost all credibility regarding objectivity on this site long ago, DubsTF. You're now at the stage where you're simply embarrassing yourself with each irrational anti-MS diatribe you post.
"You lost all credibility regarding objectivity on this site long ago, DubsTF. "
Irony defined from the man who has secret reports that only he's allowed to see and who spends so much time commenting on this European media outlet even though he classes European media as 'notoriously' unreliable.
Also if DubsTF is the antiMS cheerleader you are his antithesis.
I think DubsTF was putting an alternative point across that is all. Interesting that Xbox 360 unit sales were down. I wonder how it will fair this year?
Entertainment & Devices
This Microsoft division, which includes the Xbox 360 and video game businesses, suffered from a "tough comparable," as they say, because the same quarter the previous year included the release of the popular "Gears of War 2" and "Fable 2," boosting results back then. But the economy also tool [sic] a toll, with the company saying it shipped 5.2 million Xbox 360 consoles for the quarter, down from 6.0 million the same quarter last year.
Other parts of the division also suffered, thanks in part to the beleaguered Windows Mobile unit, and to everyone's favorite Microsoft music player. "Non-gaming revenue decreased $59 million or 8%, primarily reflecting decreased sales of Zune digital music and entertainment devices and Windows Mobile device platforms," the company said.
Source: PC Windows sales strong, but other Microsoft units struggle, TechFlash