Microsoft Reports $20.9B Revenue, 525M Windows 7 Sold

Microsoft doing all right for itself as it announced a quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5 percent increase from the prior year period.

“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Steve Ballmer, chief executive officer at Microsoft. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”

The Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3 percent increase from the prior year period. Nearly 200 million licenses of Office 2010 have been sold in the 18 months since launch.

The Server & Tools business posted $4.77 billion in second quarter revenue, an 11 percent increase from the prior year period, reflecting double-digit revenue growth in Windows Server and SQL Server premium editions and more than 20 percent growth in System Center revenue.

The Windows and Windows Live Division posted revenue of $4.74 billion, a 6 percent decline from the prior period. Microsoft has sold over 525 million Windows 7 licenses since launch.

The Online Services Division reported revenue of $784 million, a 10 percent increase from the prior year period. Bing organic US market share grew to 15.1 percent while Bing-powered US market share, including Yahoo! properties, was approximately 27 percent.

The Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15 percent from the prior period. The Xbox 360 installed base now totals approximately 66 million consoles and 18 million Kinect sensors. Xbox LIVE now has 40 million members worldwide, an increase of 33 percent from the prior year period.

“In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect,” said Kevin Turner, chief operating officer at Microsoft. “We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.”

Marcus Yam
Marcus Yam served as Tom's Hardware News Director during 2008-2014. He entered tech media in the late 90s and fondly remembers the days when an overclocked Celeron 300A and Voodoo2 SLI comprised a gaming rig with the ultimate street cred.
  • vaughn2k
    I just bought an XBOX 360 with Kinect, my kids loved it, I too and my wife is enjoying it... loved the games that much that I replaced my 32in with 42in HD!
    Reply
  • yorgos
    how they sell it when everything out there, laptops and oem PCs, are either Win or Mac?
    that's forcing people to buy your product.
    Reply
  • theuniquegamer
    Thats a lot of money from selling above 5M windows 7. So where is piracy in it?
    Reply
  • alanim
    There's only one thing that can be said.

    Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers.

    I'll give Steve Ballmer one thing, he knows the key to success(which lots of companies are failing to do atm), adaption, and innovation.
    Reply
  • ojas
    theuniquegamerSo where is piracy in it?powering 500M more PCs in India and China :P
    Reply
  • molo9000
    yorgoshow they sell it when everything out there, laptops and oem PCs, are either Win or Mac?that's forcing people to buy your product.
    That's what's called a natural monopoly in economics.

    That also explains their 33% net profit margin. Even Apple or Google don't have profit margins that high.
    Reply
  • g4114rd0
    - "Where are the prophets, where are the visionaries, where are the poets."
    After all, the Windows 8 Developer's Build a PC Tower Killer.
    Reply
  • p05esto
    Congrats Microsoft, you are the rock of the computer industry. For as much bad press and stupid M$/Microshaft comments you get from clueless kids in their parents basement you kick-ass year after year and provide the foundation. Good luck in 2012 and with Win8. I think bringing together Win8 on all devices will be a game changer for consumers and businesses, no other company is in the position to do this like MS can.
    Reply
  • freggo
    vaughn2kI just bought an XBOX 360 with Kinect, my kids loved it, I too and my wife is enjoying it... loved the games that much that I replaced my 32in with 42in HD!

    ... and your point is ?

    Reply
  • rpgplayer
    molo9000That's what's called a natural monopoly in economics.That also explains their 33% net profit margin. Even Apple or Google don't have profit margins that high.
    Google no, Apple yes.
    http://tech.fortune.cnn.com/2010/03/02/what-doth-it-profit-an-iphone/
    Reply