Microsoft sales up, profits slightly down

Microsoft reported a 5% year-on-year increase in revenue for its latest financial quarter, but profit dipped slightly.

Microsoft reported a 5% increase in revenue for its latest financial quarter, compared with the same three months last year, but profit did not grow.

Sales in the quarter totalled $20.89bn, while profit dropped to $6.62bn from $6.63bn last year.

Microsoft's business division increased sales 3% to $6.28bn

Microsoft said nearly 200 million Office 2010 licences have been sold in the 18 months since its launch and more than 525 million Windows 7 licences have shipped since its launch. 

Exchange and SharePoint increased by about 10% on the same period last year, while revenue from Lync and Dynamics CRM grew by more than 30%.

The company’s Server and Tools unit increased sales by 11% to $4.77bn on the back of double-digit sales increases of Windows Server and SQL Server premium editions, along with about 20% growth in system management tool System Center revenue, which was recently updated to improve support for virtualisation.

But revenue at Windows Live division declined 6% to $4.74bn for the period.

CEO Steve Ballmer said the company expected the recent Consumer Electronics Show to boost sales. “Coming out of the CES, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”

Microsoft’s Entertainment and Devices division increased its sales by 15% to $4.24bn after a busy Christmas period with strong sales of the Xbox and related equipment.

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