Strong Earnings For Microsoft’s Windows Division

Microsoft’s Windows division helped the software giant reach record revenue in its 2013 second-quarter, but year-on-year profit have fallen.

The US multinational corporation earned a net profit of $6.4 billion, or 76 cents per share, during its fiscal second quarter – down from $6.6 billion, or 78 cents per share, a year earlier.

However, due to strong business demand and key product launches, total revenue during the October to December 2012 period rose three per cent from last year’s $20.89 billion, to $21.5 billion.

Windows boosts profit

The Windows Division posted revenue of $5.88 billion, a 24 per cent increase from the prior year period.

Microsoft chief executive officer, Steve Ballmer, said: “Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8, has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers.”

The three-month results are the first to include Windows 8, the eagerly anticipated and latest version of the Microsoft Windows operating system.

The program was released on October 26 with slightly more than two months left in Microsoft’s fiscal second quarter.

Windows 8 and Surface

Microsoft has sold over 60 million Windows 8 licenses to date and the programme launch coincided with the release of its Surface tablet, but Microsoft has failed to reveal how many of these have been sold.

The Online Services Division reported revenue of $869 million, an 11 per cent increase from the prior year period.

The Microsoft Business Division posted $5.69 billion of revenue, a 10 per cent decrease from the prior year period, and the Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11 per cent from the prior year period.

Looking ahead

Microsoft reaffirms its fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.

“With new Windows devices, including Surface Pro and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need,” Ballmer added.

[Image via mrwallpaper]