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Microsoft Revenue Boosted by Windows 7

Microsoft Revenue Boosted by Windows 7

Added 29th Jan 2010

Joab Jackson IDG News Service (New York Bureau)

The company rang up US$6.66 billion (about Rs. 29,700 crores) in net income, an increase of 60 percent from the same period a year earlier. Revenue totalled $19.02 billion (about Rs. 86,400 crores) for the quarter ending Dec. 31, a 14 percent increase from the prior year.

Part of the boost came from deferred revenue earned earlier this year, from pre-sales of Windows 7 to PC makers and retailers. This revenue amounted to $1.71 billion (about Rs. 7,695 crores).

Even without the deferred revenue, Microsoft came in line with analyst expectations, with second-quarter revenue totaling $17.31 billion (about Rs. 77,895 crores), and earnings of $0.60 (about Rs. 27) per share. In a poll of analysts, Thomson Reuters showed an expected revenue of $17.9 billion (about Rs. 80,555 crores) and an earnings per share of $0.59 (about R. 26.55).

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This quarter saw the release of Windows 7, of which more than 60 million licenses were sold, Microsoft said. The company also released Windows Server 2008 R2.

Windows-related sales brought in the largest chunk of revenue, $6.9 billion (about Rs. 31,050 crores), up 72.5 percent from $4 billion (about Rs. 18,000 crores) in the second quarter of fiscal 2009. Server and tools enjoyed a more modest increase, with $3.8 billion about Rs. 17,100 crores) in revenue, up from $3.75 billion (about Rs. 16,875) in the prior year.

Not all of Microsoft's businesses sidestepped the recessionary doldrums, however. Online services revenue slumped in the quarter, to $581 million (about Rs. 2,614 crors), down from $609 million (about Rs.2,740 crores) the year before. The business division and the entertainment and services division also had lackluster revenue.

This was the last quarter overseen by Microsoft Chief Financial Officer Chris Liddell, who left Microsoft Dec. 31. Peter Klein has taken the CFO role.