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Microsoft Posts Q1 Earnings Ahead of Windows 8 Launch

Microsoft today announced earnings for its first fiscal quarter for 2013. The company's revenue for the quarter ended September 30 was $16.01 billion. Operating income and net income were $4.47 billion and $0.53, respectively, while diluted earnings per share was $0.53 per share.

Microsoft's Business Division posted $5.50 billion in first-quarter revenue, while represents a 2 percent decrease from the same period last year. The Windows & Windows Live Division posted revenue of $3.24 billion, a 33 percent decrease from the prior year period. Microsoft said that adjusting for the impact of the Office Offer, non-GAAP revenue for the Business Division increased 1 percent. Adjusting for the Windows Upgrade offer and pre-sales of Windows 8 to OEMs, the Windows division non-GAAP revenue fell by 9 percent for Q1. The Entertainment and Devices division also fell, posting a revenue of $1.95 billion, a decrease of 1 percent from the same period last year.

It's not all bad news, though. Microsoft's Server & Tools business reported first-quarter revenue of an 8 percent increase from last year. Additionally, the company's Online Services Division reported a revenue increase of 9 percent, equating to $697 million for the quarter, and a 15 percent increase in advertising revenue.

This is a massive month for Microsoft with the company prepping launches for Windows 8, its Surface tablet, and Windows Phone 8.

"We're incredibly excited to be approaching general availability of Windows 8 and Windows RT," said Kevin Turner, Microsoft chief operating officer.  "We've already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooks and all-in-ones to the most powerful desktop computers."

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  • Thunderfox
    "Operating income and net income were $4.47 billion and $0.53"

    MS only made 53 cents this quarter? Man people REALLY don't want windows 8.
    Reply
  • you think microsoft earnings are bad now

    wait til they release windows 8
    Reply
  • net income went down 22% to 4.47 billion (or 0.53USD per share) from 5.7 billion last year (or 0.68USD per share)
    Reply
  • gmarsack
    Headline should follow with "... just in case Windows 8 really IS THAT BAD"
    Reply
  • captaincharisma
    just wait till after the launch
    Reply
  • ejb222
    ^looks like the trolls are up early this morning. Must be hungry.
    Reply
  • Thunderfox
    ^looks like the trolls are up early this morning. Must be hungry.
    Reply
  • bllue
    Surface will probably do well, especially the Pro version. MS probably won't have much of a loss next quarter
    Reply
  • looks like the spammers are up early this morning. must be bored ;)
    Reply
  • p05esto
    Who is spamming? Windows 8 will burn and rash, no doubt about that one. MS screwed themselves with that horrible UI. It looks pretty at first but is not good for getting down to work at your 8hr a day job. Who thinks employers want a lame start screen full of time wasting internet activities? They should have a pro and consumer version. Make the consumer version made of tinker toys for all I care.
    Reply