Microsoft quarterly profits beat expectations
Published: 19th Apr 2012 22:31:15
Microsoft's profits in the three months to the end of March dropped slightly but the results still beat analysts' expectations after a surprise rise in sales of its Windows operating system.
The world's largest software firm made a net profit of $5.11bn (£3.2bn), compared with $5.23bn a year earlier.
Sales rose by 6% to $17.41bn.
Windows sales rose 4% against forecasts of a 4% decline, though sales at its entertainment division, which includes the Xbox console, fell 16%.
Its business division saw revenues increase 9% "reflecting the continued strength of Office 2010", the company said.
Brendan Barnicle, analyst at Pacific Crest Securities, said the results looked good.
"Particularly good was the Windows business, which grew about 4%, more than PC industry growth. In the last few quarters, Windows has been growing less than PCs overall," he said.
"It's not clear yet what drove this change, but it could be that the negative impact on PCs from tablets has peaked. The Office business was particularly strong too, which is encouraging."
Microsoft shares rose 3% in after-hours trading in New York.
The company also noted that the results for the same quarter a year ago had been boosted by a $461m tax benefit.
Windows is facing competition from the growth of tablet computers such as Apple's iPad and mobile devices using Google's Android system.
However, Microsoft is hitting back with the release of Windows 8, an operating system for PCs and mobile devices.
Earlier this week Microsoft said this next operating system would come in three different types.
For those with Intel-compatible machines, the OS will be available in two versions - Windows 8 and Windows 8 Pro.
And for those with devices, largely tablets, powered by ARM-designed chips, there will be a Windows RT version.
"We're driving toward exciting launches across the entire company, while delivering strong financial results," said chief executive Steve Ballmer, announcing the financial results.
"With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."
At 12:58:39 in EnglandA poem about the killing of PC Keith Blakelock during riots in north London was written by the man accused of his murder, a court has heard.
At 12:58:21 in SportKent have announced a pre-interest and pre-tax profit of £156,778 for the financial year to November 2013.
At 12:56:04 in ScotlandA hamster has been found abandoned inside a plastic play tube in Edinburgh.
At 12:55:09 in BusinessThe sometimes fraught relationship between leaseholders and their freeholders is going to be investigated by the Office of Fair Trading (OFT).
At 12:54:04 in HeadlinesIndia's Supreme Court has ordered the continuing detention of businessman Subrata Roy and asked his firm to come up with a plan to repay its investors.
At 12:53:21 in SportCrystal Palace winger Jason Puncheon has been fined £15,000 by the Football Association and warned about his future conduct for Twitter comments he made in relation to former boss Neil Warnock.
At 12:52:43 in HeadlinesA second witness at the murder trial of South African athlete Oscar Pistorius has told a court in the capital Pretoria she was awoken by the sounds of a fight early on 14 February 2013.
At 12:42:01 in PoliticsThere is a risk that "deliberate provocation" could give rise to a dangerous incident in Ukraine, Foreign Secretary William Hague has warned.
At 12:41:48 in EnglandA residential treatment programme for addicts which closed in Yeovil is to reopen after the charity running it merged with another organisation.
At 12:40:03 in ScotlandPolice Scotland has exceeded its target to recruit 1,000 additional officers.
Harvard CitationBBC News, 2012. Microsoft quarterly profits beat expectations [Online] (Updated 19th Apr 2012)
Available at: http://www.ukwirednews.com/news/1423469/Microsoft-quarterly-profits-beat-expectations [Accessed 8th Mar 2014]
News In Other Categories
Apple has unveiled its new iPhone technology for cars at the Geneva Motor Show.
There is a risk that "deliberate provocation" could give rise to a dangerous incident in Ukraine, Foreign Secretary William Hague has warned.
Fawlty Towers star Prunella Scales has "a sort of mild Alzheimer's", her husband Tim West has revealed in the Radio Times.
Kent have announced a pre-interest and pre-tax profit of £156,778 for the financial year to November 2013.
A hamster has been found abandoned inside a plastic play tube in Edinburgh.
The sometimes fraught relationship between leaseholders and their freeholders is going to be investigated by the Office of Fair Trading (OFT).