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Microsoft Announces Earnings for End of FY 2011

By - Source: Microsoft | B 16 comments

Microsoft has announced its quarterly earnings for the fiscal quarter just ended as well as financial results for its last fiscal year.

Microsoft this week released details for the fourth quarter of the company's 2011 fiscal year, which ended June 30. Redmond recorded revenue of $17.37 billion for the quarter, an eight percent increase from the same period of the prior year. Operating income, net income, and diluted earnings per share for the quarter were $6.17 billion, $5.87 billion, and $0.69 per share, which represented increases of four percent, 30 percent, and 35 percent, respectively, year-over-year.

Because this was the end of Microsoft's FY2011, the company also released details for the entire year. For FY2011, Microsoft reported record revenue of $69.94 billion, a 12 percent increase from the prior year. Operating income, net income, and diluted earnings per share for the year were $27.16 billion, $23.15 billion, and $2.69, which represented increases of 13 percent, 23 percent, and 28 percent year-over-year.

Microsoft reports that its Microsoft Business Division revenue for the fourth quarter grew 7 percent with revenue for the full year increasing 16 percent, while Server and Tools revenue grew 12 percent for the fourth quarter, making it the fifth consecutive quarter of double-digit growth, and grew 11 percent for the full year. Windows and Windows Live Division revenue saw a 1 percent decline for the quarter just ended and revenue for the full year decreased 2 percent. Redmond's Online Services Division revenue grew 17 percent for the quarter and 15 percent for the full year, which the company attributes to increases in search revenue (Bing's U.S. search share increased 340 basis points year-over-year to 14.4 percent this quarter). The ongoing popularity of Microsoft's Xbox 360 and Kinect helped revenue for the Entertainment and Devices Division grow 30 percent for the fourth quarter and massive 45 percent for the year.

"A strong year of double-digit increases in revenue and earnings is a real credit to all of our Microsoft employees and partners around the world. We continue to see strong business demand across all of our products, from small businesses all the way up to the largest global enterprises,” said Kevin Turner, chief operating officer at Microsoft. "Our move to cloud services continues with the release and momentum of Office 365 and growth in Windows Azure. We’re providing our customers seamless and powerful ways to move to the cloud, and we are well positioned for the coming year.”

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  • -5 Hide
    Meatymutawings , July 23, 2011 2:32 PM
    6 billion net income for a quarter.
    I wonder how much did it cost to develop windows 7.
  • 5 Hide
    jfby , July 23, 2011 5:11 PM
    MeatyMutaWings6 billion net income for a quarter.I wonder how much did it cost to develop windows 7.

    That cost would go against revenue, not net income. Net should be after all costs are calculated.
  • 6 Hide
    molo9000 , July 23, 2011 6:34 PM
    MeatyMutaWings6 billion net income for a quarter.I wonder how much did it cost to develop windows 7.


    Net profit margin of 33.7%
  • Display all 16 comments.
  • 0 Hide
    alidan , July 23, 2011 7:15 PM
    MeatyMutaWings6 billion net income for a quarter.I wonder how much did it cost to develop windows 7.

    generally it takes 1 billion to make an os, but than again, win 7 want a ground up os like others were.
  • 4 Hide
    zoemayne , July 24, 2011 2:14 AM
    "generally it takes 1 billion to make an os" not true.

    You can't generalize os's like that
  • -8 Hide
    memadmax , July 24, 2011 4:35 AM
    Alright you libtards.... while the gas companies are making just a little over .05% a gallon of profit per gallon of gasoline, the Real thieves named Apple and Microshaft are making a killing.... sometimes over 50% of markup value... that's right, the shiny new windows 7 pro you bought went 50%, or more, into direct profit.................. happy now???????????????????
  • 5 Hide
    back_by_demand , July 24, 2011 3:58 PM
    memadmaxAlright you libtards.... while the gas companies are making just a little over .05% a gallon of profit per gallon of gasoline, the Real thieves named Apple and Microshaft are making a killing.... sometimes over 50% of markup value... that's right, the shiny new windows 7 pro you bought went 50%, or more, into direct profit.................. happy now???????????????????

    Very happy thanks, whilst I have the option of staying with Windows XP, the fact I only have to spend approx $100 in 10 years isn't so bad.
    However, my car needs filling up nearly twice a month and I don't have any option to go to Apple Fuel for my car or delay buying at all otherwise my car runs out and I can't get to work.

    Any other pop-psychology theories you need destroying?
  • 4 Hide
    eddieroolz , July 24, 2011 6:57 PM
    Good job Microsoft.
  • -3 Hide
    badaxe2 , July 24, 2011 8:57 PM
    Wow, on track to pocket around 24 million this year. Funny how they say they can't afford to make XBL free. Funny we don't hear of hacking attempts here considering their profit margins completely dwarf Sony's, and they didn't already lose billions of dollars to a massive earthquake. But I suppose MS ripping people off is "acceptable" seeing as how most hackers use MS products.
  • -4 Hide
    badaxe2 , July 24, 2011 8:57 PM

    I meant billion.
    badaxe2Wow, on track to pocket around 24 billion this year. Funny how they say they can't afford to make XBL free. Funny we don't hear of hacking attempts here considering their profit margins completely dwarf Sony's, and they didn't already lose billions of dollars to a massive earthquake. But I suppose MS ripping people off is "acceptable" seeing as how most hackers use MS products.

  • 0 Hide
    back_by_demand , July 25, 2011 10:55 AM
    badaxe2Wow, on track to pocket around 24 million this year. Funny how they say they can't afford to make XBL free. Funny we don't hear of hacking attempts here considering their profit margins completely dwarf Sony's, and they didn't already lose billions of dollars to a massive earthquake. But I suppose MS ripping people off is "acceptable" seeing as how most hackers use MS products.

    If you want free online gaming, game on the PC, no one is twisting your arm to use an Xbox.
    Everyone knows it costs money so if you buy one then moan about it you just look daft.
  • 2 Hide
    custodian-1 , July 25, 2011 11:50 AM
    memadmaxAlright you libtards.... while the gas companies are making just a little over .05% a gallon of profit per gallon of gasoline, the Real thieves named Apple and Microshaft are making a killing.... sometimes over 50% of markup value... that's right, the shiny new windows 7 pro you bought went 50%, or more, into direct profit.................. happy now???????????????????


    Yes the Gas dealer makes a nickle on a gallon. The distributor makes 3-4 cents a gallon, the gas storage area gets half a penny a gallon, and it goes on and on all the way to the person who owns or leases the land the oil comes from. On top of that there is 60 cents of tax. You make it sound so easy.
  • 0 Hide
    wcnighthawk , July 25, 2011 1:29 PM
    badaxe2Wow, on track to pocket around 24 million this year. Funny how they say they can't afford to make XBL free. Funny we don't hear of hacking attempts here considering their profit margins completely dwarf Sony's, and they didn't already lose billions of dollars to a massive earthquake. But I suppose MS ripping people off is "acceptable" seeing as how most hackers use MS products.


    Microsoft doesn't openly ask for attacks by being dicks either, unlike Sony. They got what they deserved.
  • 0 Hide
    robochump , July 25, 2011 5:35 PM
    meatymutawings6 billion net income for a quarter.I wonder how much did it cost to develop windows 7.


    Windows 7 is a more streamlined Windows Vista. So not much cost at all but initial cost to develop Vista. Then again MS software development is very cost effective and profitable. MS hardware division is in need of innovation and major improvement. Only the XBox is a desirable MS hardware product.
  • 0 Hide
    robochump , July 25, 2011 5:43 PM
    How is MS ripping people off BTW? MS is not a charity and for profit company. Just because they make allot of profit doesn't mean they are 'ripping' people of but successful!!! Big difference! Many foreign companies would love to be in MS'es position. Go USA!!!!
  • 1 Hide
    Anonymous , July 26, 2011 2:35 AM
    "Microsoft also has been roundly criticized in the past by many of its own employees for outsourcing more product development, support and other functions, leading to a need for fewer jobs. Wall Street might love Microsoft outsourcing to save money, but, understandably, laid-off Softies might feel differently…" from ZD Net. Maybe we could plug a few holes that let "American" companies export jobs. Maybe we need to emphasize more tech education and make it easier for Americans to pay for college.