Microsoft Q2 2013 Earnings Indicate $21.56b Revenue, $6.38b Profit
Microsoft says its fourth-quarter earnings slipped 4 percent, despite a lift from its latest version of Windows.
The Redmond, Washington-based software giant posted revenue of $21.46 billion and net income of $6.38 billion, with earnings per share of 77 cents. That’s largely in line with what Wall Street had been expecting, though a bit lower on the revenue side and higher on the earnings side — ahead of today’s financial report, the analyst consensus was that Microsoft would post earnings of 75 cents a share on $21.53 billion in revenue.
The results announced Thursday are the first to include Windows 8. The program is a dramatic overhaul of the Microsoft Corp operating system that powers most PCs. Windows 8 came out 26 October with slightly more than two months left in Microsoft’s fiscal second quarter.
When Windows 8 finally hit the market, Microsoft also unveiled its own tablet computer, Surface, as a showcase for the operating system. Microsoft didn’t disclose Thursday how many Surface devices were sold in the October-December period.
Microsoft’s Entertainment & Devices division, which is responsible for the Xbox and Surface, saw an 11% decline from last year, with only $3.77 billion of revenue. This comes after Microsoft announced that the Xbox 360 was the top-selling gaming console for two years straight. It looks like holiday sales weren’t as great as the company expected.
Microsoft’s Online Services division saw more growth, however, with $869 million in revenue, which is an 11% increase year-over-year. Thanks to the upcoming Office 365 suite and SkyDrive, Microsoft’s online services don’t seem to be slowing down anytime soon, especially with the deal that Microsoft made with the city of Chicago to bring Office 365 services to city employees.