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Microsoft beats analyst Q3 estimates with $17.41bn revenues

Warwick Ashford

Microsoft has reported $17.41bn in revenue for the third quarter of its fiscal year, up 7% on the previous year and beating analyst estimates of $17.16bn.

According to the software firm, this is a record for third-quarter revenue, up 6% from the same period last year. Operating income was up 12% to $6.37bn.

We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said Microsoft chief executive Steve Ballmer in the earnings release.

“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,” he said.

The biggest gain in the quarter was made by the Server & Tools division with $4.57bn in revenue, up 14% percent from last year.

But the top earner was the Microsoft Business Division, with revenue of $5.81bn, up 9%. This was followed by the Windows and Windows Live Division with $4.62bn, representing an increase of 4%.

Microsoft said enterprise adoption of Windows 7 had reached 40%.

Sales from Microsoft’s core Windows and Office businesses held up better than expected in the opening months of this year, according to the Financial Times.

Microsoft said PC sales had grown in the three months to the end of March, easing concerns around the PC industry after shortages of hard drives and growing competition from tablet computers.

This marks a big turnaround from early in the year, and echoes the stronger than expected performance from the chipmaker Intel earlier in the week, the FT said.

The Online Services Division reported revenue of $707m, up 6%, but posted a loss of $479m, described as an “operating loss improvement of approximately $300m.”

The Entertainment & Devices Division reported $1.62bn in revenue, down 16%. But Microsoft said the Xbox 360 was the top-selling console in the US for the 15th consecutive month, and that there are now 40 million Xbox LIVE members.

The overall positive financial results pushed Microsoft’s shares up by nearly 3% in after-market trading.


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