Microsoft Quarterly Profit Up 79 Percent

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Microsoft Quarterly Profit Up 79 Percent

Windows Vista earned $4.34 billion

Microsoft's earnings shine

Microsoft’s $16 billion in revenue is a company record.
The company’s client unit–think Vista and XP–had operating income of $3.36 billion on revenue of $4.33 billion. For the same quarter a year ago, Microsoft’s client group had operating income of $1.84 billion on revenue of $2.58 billion. Translation: For all the whining about Vista folks are buying it.
Enterprise sales are strong with Microsoft’s business division and server and tools unit posted double-digit revenue growth rates. The business division–Office, Sharepoint etc–in the December quarter reported operating income of $3.18 billion on revenue of $4.81 billion.
Microsoft’s server and tools business had operating income of $1.72 billion on revenue of $3.28 billion in the December quarter.
Microsoft says it is seeing “healthy demand from both businesses and consumers in the United States and our growth in emerging markets is especially strong.”
Xbox 360 console sales hit the 17.7 million unit mark. That’s a lot of units for a relatively small profit. In the December quarter, Microsoft’s entertainment and devices division had an operating profit of $357 million on revenue of $3.06 billion.
But Microsoft’s online services division–MSN etc.–still isn’t making money with a second quarter operating loss of $245 million on revenue of $863 million.


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