Microsoft Reports Fiscal Q2 2011 Earnings

Microsoft logoIt's the time of year again, and Microsoft is opening its books for all to see. The company recorded revenue of $19.95 billion for fiscal quarter 2011 and a profit of $6.63 billion.

When looking at Microsoft's divisions individually, we see that revenue for the Windows and Windows Live Division was actually down this year compared to the same quarter last year. For fiscal Q2 2010, the division pulled in $7.19 billion; this year, that figure fell to $5.05 billion. On the other hand, the Entertainment and Device Division -- home to Microsoft's Xbox 360 -- saw a healthy increase in revenue from from $2.38 billion during fiscal Q2 2010 to $3.7 billion for fiscal Q2 2011 (no doubt fueled by Kinect).

“We are enthusiastic about the consumer response to our holiday lineup of products, including the launch of Kinect. The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations,” said Microsoft CFO Peter Klein. “The pace of business spending, combined with strong consumer demand, led to another quarter of operating margin expansion and solid earnings per share growth.”

  • In the company's press release, it made note of the following highlights for the quarter:
  • Windows 7 licenses have topped 300 million worldwide
  • Microsoft has had over 20 million downloads of Internet Explorer 9
  • Office 2010 is the fastest-selling consumer version in the history of the productivity suite
  • Windows Phone 7 is now available in 30 countries, with a total of 60 carriers (the company already announced that it has sold over 2 million Windows Phone 7 licenses)
  • Microsoft is seeing an uptake in adoption of its Windows Azure platform

With Windows revenue taking a slide this quarter, Microsoft is looking ahead to capture market share in the growing tablet market. The company has already announced that the next version of Windows will be capable of running on ARM processors, an architecture that has become the dominant force behind smartphones and tablets.

“Windows 7 continues to be the fastest-growing operating system in history, " said Microsoft COO Kevin Turner. "Our recent System on a Chip announcement demonstrates our commitment that Windows will have the power and flexibility to run everywhere and on every device.”

Source: DailyTech

Tags: Microsoft, report

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