Microsoft just reported its third quarter 2011 earnings today with revenues of $16.43 billion, an increase of 13% from the same period of 2010. Microsoft’s operating income was $5.71 billion, its net income was $5.23 billion and its diluted earnings per share were at $0.61, a 36% increase from last year.
With this report Microsoft surpassed Wall Street analyst expectations which were at 56 cents per share on $16.19 billion in revenue.
Microsoft said that the strong financial results were primarily due to Office, Xbox and Kinect sales.
From Microsoft CFO Peter Klein:
“We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses. Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications.”
On the strength of Office sales, the Business Division grew 21% since last year at $5.25 billion in revenue. Servers and Tools grew 11% at $4.1 billion.
The Entertainment and Devices division reported a 60% increase in sales, bringing in $1.95 billion in revenue with an operating income at $225 Million. The company’s Online Services division, which includes Bing, made $684 million in revenue (a 14% increase), operating at a loss of $726 million.
While Microsoft did beat the street at $16.43 billion in revenue (versus $14.5 billion last year), its net profit was $5.23 billion which means that rival Apple has trumped it in profits as well as revenue and market cap, bringing in $5.99 billion in profit last 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...