Microsoft posted healthy earnings today for its fiscal second quarter of 2013, despite challenges, including questions over Windows 8 and Surface’s popularity.
Microsoft reported revenue of $21.46 billion, operating income of $7.77 billion, profit of $6.38 billion, and diluted earnings of $0.76 per share.
Wall Street analysts surveyed by FactSet predicted Microsoft would report $21.56 billion in revenue and earnings per share of $.75, so Microsoft’s results were close to their estimates.
The highlight of the report was easily the company’s Windows division results, which included Windows 8 licence sales. Windows 8 has sold 60 million licences to date. The division posted revenue of $5.88 billion, a 24 percent increase from the same period a year ago.
Unfortunately, Microsoft did not reveal how many Windows 8 licences had been activated to date or how many Surface tablets had been sold.
“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” Microsoft CEO Steve Ballmer (pictured) said in a statement. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”
Other divisions that posted gains were Server & Tools and Online Services. Server & Tools posted revenue of $5.19 billion, a 9 percent jump year-over-year, while Online Services revenue was $869 million, an 11 percent bump from a year ago.
The Business and the Entertainment and Devices divisions saw revenue decreases. The Business division posted revenue of $5.69 billion, a 10 percent decrease from a year ago, while Entertainment and Devices was down to $3.77 billion, a decrease of 11 percent year-over-year.
Investors don’t seem to be moved by the results, but they aren’t rapidly dropping Microsoft stock like they did with Apple yesterday. Currently, Microsoft’s stock is down 1.5 percent in after-hours trading.
Steve Ballmer photo via Sean Ludwig/VentureBeat
Filed under: Business
via startup news