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Microsoft Posts Record Q1 Revenue of $16.20 Bn.

By - Source: Tom's Hardware US | B 78 comments

Microsoft money!

While some people may think that Microsoft has no consumer mojo, investors should be fairly happy at whatever's going on there at Redmond, as the world's largest software maker today announced a record first-quarter revenue of $16.20 billion for the quarter ended Sept. 30, 2010, a 25 percent increase from the same period of the prior year.

Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share, which represented increases of 59, 51 and 55 percent, respectively, when compared with the prior year period.

“This was an exceptional quarter, combining solid enterprise growth and continued strong consumer demand for Office 2010, Windows 7, and Xbox 360 consoles and games,” said Peter Klein, chief financial officer at Microsoft. “Our ability to grow revenue while continuing to control costs allowed us to deliver another quarter of year-over-year margin expansion.”

Microsoft made four points at what helped it achieve a new record:

·  Office 2010 is off to a fast start with revenue growing over 15% in its first full quarter in market.

·  Microsoft continues to see a healthy and sustaining business PC refresh cycle.

·  Xbox 360 consoles grew 38%, outselling every competing console in the U.S. for each of the past four months.

·  For yet another quarter, Bing continued to grow market share, while achieving major milestones in implementing Microsoft’s partnership with Yahoo.

Can we get some Steve Ballmer whoop whoop in here?

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Top Comments
  • 33 Hide
    Shez , October 29, 2010 12:23 PM
    Hey, remember this headline from JUST yesterday "Is Microsoft Really a Dying Consumer Brand?". I think the question has been answered.
  • 22 Hide
    bustapr , October 29, 2010 1:20 PM
    I think Microsoft just buttraped CNN...
  • 18 Hide
    jdamon113 , October 29, 2010 12:34 PM
    Now Microsoft, let do something awesome with the money.
    Buy Nvidia = or a small country!!!!
Other Comments
    Display all 78 comments.
  • 33 Hide
    Shez , October 29, 2010 12:23 PM
    Hey, remember this headline from JUST yesterday "Is Microsoft Really a Dying Consumer Brand?". I think the question has been answered.
  • 18 Hide
    jdamon113 , October 29, 2010 12:34 PM
    Now Microsoft, let do something awesome with the money.
    Buy Nvidia = or a small country!!!!
  • -5 Hide
    randomizer , October 29, 2010 12:39 PM
    It's sad to see Office 2010 doing well. I thought it was an ok, if unnecessary incremental update to 2007, until I discovered that Microsoft had the nerve to include in this office suite the ability to alter Windows service configurations. I have no intention of purchasing simple productivity software that decides that it knows how best to configure my system.
  • 9 Hide
    victorintelr , October 29, 2010 12:59 PM
    ShezHey, remember this headline from JUST yesterday "Is Microsoft Really a Dying Consumer Brand?". I think the question has been answered.


    There it goes CNN's statement...
  • 5 Hide
    Drag0nR1der , October 29, 2010 1:01 PM
    randomizerIt's sad to see Office 2010 doing well. I thought it was an ok, if unnecessary incremental update to 2007, until I discovered that Microsoft had the nerve to include in this office suite the ability to alter Windows service configurations. I have no intention of purchasing simple productivity software that decides that it knows how best to configure my system.


    Heaven forbid that a MS product should configure another MS product for optimal performance together....

    I think though, that 2010 is doing so well simply because 2007 didn't really catch on in offices, with a lot of them sticking to 2003 because of the changes in the layout and operation of the program's UI. Now office 2003 is so dated as a product the switch t oa new interface seems somehow less of a reason to put off updating.
  • 5 Hide
    victorintelr , October 29, 2010 1:02 PM
    ShezHey, remember this headline from JUST yesterday "Is Microsoft Really a Dying Consumer Brand?". I think the question has been answered.


    There is goes CNN's statement...down the toilet.
  • 22 Hide
    bustapr , October 29, 2010 1:20 PM
    I think Microsoft just buttraped CNN...
  • 4 Hide
    thearm , October 29, 2010 1:38 PM
    But, their supposed to be a dying computer brand : /
  • 5 Hide
    spentshells , October 29, 2010 1:45 PM
    looks like however they were dying was cured....must be stem cells
    that should give cnn something else to be completely out of the loop on
  • 3 Hide
    geoffs , October 29, 2010 1:54 PM
    jdamon113Now Microsoft, let do something awesome with the money.Buy Nvidia = or a small country!!!!
    That would be a terrible combination. Intel needs to pull their heads out of whatever orifice they've stuck them in and but Nvidia. At least then, Intel could make a decent integrated GPU. And Intel's manufacturing and low power technology could make Nvidia GPUs faster and/or lower power.
  • -5 Hide
    Pyroflea , October 29, 2010 2:03 PM
    Wait, they're first quarter took place during the... second quarter? What's up with your info guys.
  • -1 Hide
    jfby , October 29, 2010 2:17 PM
    I think this answers the question 'is Microsoft a dead question' for the short term. I'm looking forward to the next five years to see how Microsoft navigates the near term consumer tech market.
  • 0 Hide
    r3t4rd , October 29, 2010 2:30 PM
    PyrofleaWait, they're first quarter took place during the... second quarter? What's up with your info guys.

    Business fiscal quarters are different from your average Joe's yearly fiscal quarters. the first Business quarter starts in May or June - something to that extent.
  • 1 Hide
    r3t4rd , October 29, 2010 2:36 PM
    If that is the first quarter....with the holidays in the next two months here, kinect, and WinMob 7, MS mind as well just kick the buckett. Save us some debate. Ofcourse, people have been telling me that MS is dead for the past 20yrs. Meh!
  • 3 Hide
    gogogadgetliver , October 29, 2010 2:39 PM
    r3t4rdBusiness fiscal quarters are different from your average Joe's yearly fiscal quarters. the first Business quarter starts in May or June - something to that extent.


    Yep, MS Fiscal year begins in July. It's rotated exactly 6 months.
  • 1 Hide
    znegval , October 29, 2010 2:51 PM
    jfbyI think this answers the question 'is Microsoft a dead question' for the short term. I'm looking forward to the next five years to see how Microsoft navigates the near term consumer tech market.


    They never asked if Microsoft was dead. The question was "is Microsoft a dying brand?" and no matter how much hate I will certainly get, I think it's a perfectly valid question. Microsoft is not a dying corporation and won't be for a very long time but you can argue that it's a dying BRAND. Like it or not, when you hear "Microsoft" you don't think "innovation". Think of the oh-so-hated Apple for example. You might not like the iPod, iPad, iPhone or whatever but they all sell like crazy worldwide and people instantly think of these relatively innovative things they put out when they hear "Apple". Microsoft is more powerful than Apple as a CORPORATION, but Apple is certainly a more recognizable brand. Unfortunately Microsoft does a terrible job trying to keep it's name significant (not it's products: Office, Windows, which are old but still crazy popular and will likely be for decades).
  • 14 Hide
    d_kuhn , October 29, 2010 3:20 PM
    Why the heck is everyone comparing Apple to MS revenue like it's some sort of race? Apple is rocking, Microsoft is rocking... what's wrong with that.

    Both netted about 5 Billion... but they're doing it in almost completely different ways. MS is primarily a PC software company (with the Gaming thing going on the side), Apple is more and more a consumer electronics company... more accurately compared to the Sony's out there not the Microsoft's.

    Apple grossed more, Microsoft made a lot more in software sales, Apple has better brand recognition, Microsoft has higher margins. They're both strong companies who've got solid products.
  • 8 Hide
    pacapaca , October 29, 2010 3:22 PM
    usersnameBut…what's this…?Apple reported a new record of $20.34 billion in revenues compared to Microsoft's $16.20 billion for the fall quarter


    Oh, and Microsoft's net profit was $7.12bn vs. Apple's $4.3bn. Not that it's a competition or anything :) .
  • 8 Hide
    Vladislaus , October 29, 2010 3:56 PM
    usersnameBut…what's this…?Apple reported a new record of $20.34 billion in revenues compared to Microsoft's $16.20 billion for the fall quarter…Oh, and…A new IDC report shows strong iPhone sales have pushed Apple past Research in Motion, making the iPhone-maker the world's fourth-largest mobile phone seller in the third quarter of 2010.Bip…Bop…Bash…and the comment is hidden.

    What matters most is profit. And Microsoft is still a lot more profitable than Apple.

    Perhaps you should go here:
    http://www.forbes.com/lists/2010/18/global-2000-10_The-Global-2000_Rank.html
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