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Microsoft revenue – over $12 billion – strong windows demand

Microsoft revenue – over $12 billion – strong windows demand

With the recent announcement of huge profits for Apple, Microsoft are hot on the heels with their stunning revenue reports of $12.92 billion for its fiscal first quarter which ended September 30th. They also said they deferred $1.47 billion in revenue ahead of the launch of Windows 7.

While these results are massively impressive, unlike Apple, their sales are down from a year ago.

"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," CFO Chris Liddell said to the press. "We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions."

Microsoft have been cutting costs and expects operating expenses to be around $26.2 billion, which is a drop of $300 million from the previous forecast. Revenue from its online business dropped to $490 million from $520 million from a year ago – this includes Bing and MSN.

Sales figures are quite strong, they sold 2.1 million Xbox consoles in the quarter (1 million of which have probably already been RMA’d) which has certainly helped to get their revenue high.

Windows growth is good with a 6 percent increase in the quarter thanks in part to the massive sales in the netbook market.

Allan Campbell: Heaven Media Ltd

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Stuart Davidson

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