Microsoft posts record profits: Sees Windows Phone, Xbox and Cloud as growth areas

24/10/2011

Microsoft has announced record quarterly revenue of $17.37bn for its first fiscal quarter, with its Windows Phone, Xbox and cloud services earmarked for future growth. Revenue is up by seven per cent against the same time last year, and the firm reported moves in the positive direction for its operating income, net income and diluted earnings too.

24/10/2011

Revenue is up by seven per cent against the same time last year, and the firm reported moves in the positive direction for its operating income, net income and diluted earnings too.

Operating income, net income, and diluted earnings per share for the quarter were $7.20bn, $5.74bn, and $0.68 per share, respectively, gains of one per cent, six per cent, and 10 per cent.

"We saw customer demand across the breadth of our products, resulting in record first-quarter revenue and another quarter of solid EPS growth," said Peter Klein, Microsoft CFO. "Our product portfolio is performing well, and we've got an impressive pipeline of products and services that positions us well for future growth."

The firm's Business division did adequateley, where revenues increased by eight per cent to $5.62bn. Here server sales appeared to do the best and Microsoft said that Lync, Sharepoint and Exchange grew by double digits.

Windows sales grew by just two per cent, and the company said that this was in line with the PC market. Interestingly the firm did not break out any figures for Windows Phone, which is in a market that is growing faster than the PC market and could have been more telling.

"We had another strong quarter for Office, SharePoint, Exchange, and Lync, and saw growing demand for our public and private cloud services including Office 365, Dynamics CRM Online, and Windows Azure," said Microsoft's COO, Kevin Turner.

"With a great set of consumer products like Windows 7 PCs, Windows Phone 7.5, Xbox and Kinect, we are excited about the holiday buying season."

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