News

Microsoft Reports Record Q2 Results

Windows 7 release drives record revenue and profits for the second quarter ended Dec. 31, 2009.

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."