Another healthy quarter for Microsoft, which saw a 34.5 percent boost in net income to $4 billion, on top of a more modest 6 percent increase in quarterly revenues to $14.5 billion. (See full slides below). The return to growth was driven largely by sales of Windows 7, which were up 28 percent to $4.4 billion. (Windows Live is included in that, but it doesn’t yet produce much revenue, although Microsoft is about to update the products in Windows Live such as Hotmail and Messenger to make them more social).
Bing and Xbox Live were also strong growers, although on an absolute basis they weren’t enough to make much of a difference. At least the Xbox division (which includes the Zune and other entertainment products and devices) is no longer losing money, reporting $165 million in operating income on revenues of $1.7 billion. The online division cannot claim the same. Revenues were up 12 percent to $566 million, but It lost $713 million in operating income. That is about $300 million more than it was losing last year. That is okay, though, the $3 billion in operating income for the Windows division is up by $788 million from last year
Say what you want about Windows, it is still an amazing profit machine.
Some other stats from the quarter:
Microsoft, founded in 1975 by Bill Gates and Paul Allen, is a veteran software company, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software. Starting in 1980 Microsoft formed a partnership with IBM allowing Microsoft to sell its software package with the computers IBM manufactured. Microsoft is widely used by professionals worldwide and largely dominates the American corporate market. Additionally, the company has ventured into hardware with consumer products such as the Zune and...