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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