Microsoft Corp. today announced quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5% increase from the prior year period. Operating income, net income, and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion, and $0.78 per share, compared with $8.17 billion, $6.63 billion and $0.77 per share, respectively, in the prior year period. Prior year results include recognition of $224 million of deferred revenue related to the Office 2010 technology guarantee program.
“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Microsoft CEO Steve Ballmer in the press release. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”
The Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3% increase from the prior year period, and a 7% increase excluding the prior year recognition of deferred revenue for the Office 2010 technology guarantee program. Nearly 200 million licenses of Office 2010 have been sold in the 18 months since launch. Revenue from Exchange and SharePoint grew by 10% or more over the prior year period, and revenue from Lync and Dynamics CRM grew by more than 30%.
The Server & Tools business posted $4.77 billion in second quarter revenue, an 11% increase from the prior year period, reflecting double-digit revenue growth in Windows Server and SQL Server premium editions and more than 20% growth in System Center revenue.
“We saw strong demand for our business products and services, despite the soft PC market and continuing economic uncertainty in key parts of the world,” said Peter Klein, chief financial officer at Microsoft, in the press release. “We delivered record earnings per share by continuing to manage our costs while investing for future growth.”
The Windows and Windows Live Division posted revenue of $4.74 billion, a 6% decline from the prior period.
MacDailyNews Take: Decline.
The Online Services Division reported revenue of $784 million, a 10% increase from the prior year period. Bing organic US market share grew to 15.1% while Bing-powered US market share, including Yahoo! properties, was approximately 27%.
The Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15% from the prior period. The Xbox 360 installed base now totals approximately 66 million consoles and 18 million Kinect sensors. Xbox LIVE now has 40 million members worldwide, an increase of 33% from the prior year period.
“In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect,” said Kevin Turner, chief operating officer at Microsoft, in the press release. “We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.”
MacDailyNews Take: Kevin Turner. Powered by 100% pure bullshit.
Microsoft is revising operating expense guidance downward to $28.5 billion to $28.9 billion for the full year ending June 30, 2012.
Source: Microsoft
MacDailyNews Take: Net income of $6.62 billion, or 78 cents a share, on revenue of $20.89 billion. Ah, such cute little numbers.
God, I would hope they could muster a 5-percent growth. Since inflation in 2011 was about 3 percent, Microcrap’s sales were roughly flat for the year.
Actually, considering inflation, their income was down. See 2nd KenC comment below.
They grew the top line, but shrank the bottom line?
How? Why?
Good. The more they’re distracted by record revenues, the more they can delude themselves into liking their strategy, and liking it a lot.
Delusional. Google figures up 25%, results in a -8% bloodbath after-hours trading. MSFT +5% (as Greg L says above, virtually flat taking inflation into account) and they are up after hours? What are MSFT “investors” sucking on?
Stocks move relative to expectations. Expectations have already affected the stock price, so what could have happened is that expectations for Google were for more than 25%. Let’s say 30%, and that expectation was already baked into the price, thus when Google only grows 25%, the price resets based upon the new reality. Likewise, people were expecting weak Microsoft results due to all the news about PCs being down, so when Microsoft has a small beat, the stock turns positive. Got that, it’s all relative to expectations.
KenC
Thank you for the explanation. Let’s hope the analysts haven’t screwed AAPL with too high of earnings expectations.
“Operating income, net income, and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion, and $0.78 per share, compared with $8.17 billion, $6.63 billion and $0.77 per share, respectively”
So, operating income is DOWN.
Net income is DOWN, and EPS is only up 1 penny. Sounds like a Microsoft’s growth has disappeared, while Apple is still growing at about 50 to 60%.
The trajectory of a missile usually flattens out as it reaches the apex… right before it plummets back to earth and explodes in a ball of flames!!! I’m getting my stick and marshmallows ready…
Well sure, at this rate Microsoft will be declaring Chapter 7 by 2025.
Actually 2036.
yep, EPS is up only because they bought back some shares.
Huge profit despite weak PC sales. So maybe having a Gov approved monopoly really works. You can build all the crappy POS products and be clueless about future technology and still be profitable. Thats just freaking awesome.
Yeah MSFT is just clueless about future tech:
I watched the entire thing… and I really tried to get excited about it, but almost fell asleep instead. Unlike many on this site, I honestly want the BEST technology… not just Apple technology. And even though I can see the “production value” in many of the fairyland technologies in this video, I just couldn’t buy that Microsoft would be able to pull them off.
Wow! All that stuff is really cool.
I’ve seen some of that in SF movies, and imagined a lot of it myself because it’s easy to make that stuff up but lots harder to actually do it!
I didn’t know it actually existed. Is it available from Microsoft now? I didn’t see it on their site.
More smoke and mirrors- SFX videos (like the courier video) It is about all MS can do at this point, they seem to be incapable of any real innovation.
In case you don’t realize it, the difference between making pie in the sky videos like this and doing legitimate R&D is night and day (as evidenced by the courier, which never was nor ever will be)
Wait..I also seen a movie where we can project ourselves into an alien body that our scientist grown. Is that coming too? Cause it looked really real in the IMAX movie I seen.
I saw that movie too! Maybe the same people made the Microsoft video.
Haha. So a fancy SciFi video paid by MS for someone to produce means MS is innovative and can build futuristic products? Ahahahahahahahahahaha. I haven’t laughed at a clueless MS drone like that in a long time. Thanks smoledman for the laughs!
Microsoft should stick with fictional technology. That’s clearly what they are best at. Apple, on the other hand, is only good at making technology that actually ships so people can use it.
agreed Microsoft’s great at making videos of stuff they can’t make.
I love how they put the text “Microsoft Office” at the end as if they’re shipping it today lol! They wish lol.
The most important two words in the msft report: “deferred earnings.” They’ve been moving their numbers forward and reaching backward for years. It’s impossible to get an accurate idea of how things are going using a single Q report.
I really ought to go read the filing, but doing the math using their press release is more fun:
Start with $20.89B.
Subtract $6.28B for the business division.
Subtract $4.77B for Servers and Tools.
Subtract $4.74B for Windows/Live.
Subtract $0.784B for Online services.
Subtract $4.24B for Entertainment & devices.
You’re left with about $76M unaccounted for (in the press release).
I’ll guess it’s revenue from selling broken office chairs that have been thrown around.
Almost. That’s a “deferred” expense, meaning they’re anticipating $76M in broken chairs for the coming quarter.
Microsoft’s Goodwill asset shot up 56% from June and “intangible assets” more than tripled. Anyone else smell something?
A lot of “asset”?
Collecting fees from Android licensing deals… is paying off ?
A recent news item said MSFT receives $5-$10 for 70% of all Android phones. You do the math!
I went to an architectural presentation today that was supposed to show images of the designs, but the presenters said they couldn’t show them because “They were done on a Mac and we couldn’t find anybody who knows how to use a Mac.”
Gosh that’s interesting. What’s your point? that the presenters were unprepared morons?
Yeah, sure you did.
This, is the best you trolls have at this point? Really…REALLY?
I wonder how many of those copies of Wimdows went to Mac users.
they still have xbox
apple doesn’t have anything on them in high end gaming