Microsoft Announces Record Third-Quarter Results

QArea Expert by QArea Expert on May 2, 2011

Microsoft Announces Record Third-Quarter Results
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On 29 of April 2011 Microsoft Corporation announced $16.43 billion of third-quarter revenue for the quarter that ended March 31, 2011, it presents a 13% growth as compared with the same period of the prior year. Net income, diluted earnings and operating income per share for were $5.23 billion, $0.61 and $5.71 billion per share, that represent increases of 31%, 36%, and 10%, accordingly, if compare with the previous year period. Diluted earnings per share contained $0.05 tax benefit originally related to an agreement with the U.S. Internal Revenue Service to set a portion of the audit of tax from 2004 to 2006 years.

Chief financial officer at Microsoft, Peter Klein said that Microsoft Corp. delivers cogent financial results in spite of a mixed PC environment that proves the breadth and strength of the business as it was announced $16.43 billion of third-quarter revenue for the ended quarter.

Consumers are buying Xbox, Office 2010 and Kinect at enormous rates, and businesses of any size are buying Microsoft applications and platforms.

Year-on-year Microsoft Business Division revenue increased 21%. From the time of the release last spring, Office 2010 has proved to be the quickest selling version of Office in history, thanks to the integrated innovation with and, Exchange and SharePoint, Dynamics and Lync CRM is impelling important growth for the division.

Tools and Server revenue increased 11% year-on-year, the fourth successive quarter of double-digit increase. Strong business adoption of SQL Server 2008 R2, System Center and Windows Server 2008 R2 are driving margin expansion and record revenue.
As 350 licenses sold Windows 7 proves to be the fastest selling operating system in history. In the third quarter, the revenue for the segment was down 4%, in conformity with PC trends, expelling previous year launch impact.
Year-over-year Online Services Division income increased 14%, chiefly driven by growth in search revenue. This quarter Bing’s US search share grew to 13, 9%.
Entertainment and Devices Division increased 60% year-on-year, it was fuelled by Kinect for Xbox 360, the promptest-selling consumer electronic device in history, and powerful Xbox 360 console continued growth and sales of Xbox Live.

Chief operating officer at Microsoft, Kevin Turner said that they deliver considerable third quarter income from their business clients, driven by prominent performance from SharePoint, Lync, Windows Server, Exchange, SQL database and other cloud services. He also added that they continue to see intense adoption of their cloud-based services amid the Fortune 500.

Business Outlook

Microsoft reconfirms operating expenditure guidance of $26.9 billion to $27.3 billion for the entire year terminating 30 of June, 2011. It offers as well prior fiscal year 2012 operating expenditure guidance of 3% to 5% increase from the mid-point of fiscal year 2011guidance, or from $28.0 billion to $28.6 billion.

Webcast Details

Chief financial officer, Peter Klein, chief accounting officer, Frank Brod, and general manager of Investor Relations, Bill Koefoed hosted a conference call and webcasted it at 2:30 p.m. PDT and 5:30 p.m. EDT to discuss some details of the performance of the company for the quarter and positive forward-looking information.

Business Outlook