Microsoft Beats Estimates With $17.4B In Revenue, $0.60 EPS

Microsoft just released its earnings report for the third quarter of its fiscal year. The company came out slightly ahead of analyst estimates, with $17.41 billion in revenue (compared to the predicted $17.16 billion) and earnings of 60 cents per share (compared to 58 cents).

Microsoft says this is a record for third-quarter revenue, up 6 percent from the same period last year. Operating income was $6.37 billion, up 12 percent.

“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” CEO Steve Ballmer said in the earnings press 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.”

Here’s how the numbers break down by division:

• Server & Tools saw $4.57 billion in revenue, up 14 percent from last year.
• The Microsoft Business Division reported revenue of $5.81 billion, up 9 percent.
• Windows and Windows Live Division saw $4.62 billion in revenue, up 4 percent. The company says enterprise adoption of Windows 7 has now reached 40 percent.
• The Online Services Division reported revenue of $707 million, up 6 percent, but posted a loss of $479 million — the release notes that this is an “operating loss improvement of approximately $300 million.”
• The Entertainment & Devices Division saw $1.62 billion in revenue, down 16 percent. However, Microsoft says 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.

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• MICROSOFT

Company: Microsoft

Website: microsoft.com

Launch Date: April 4, 1974

IPO: NASDAQ:MSFT

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...

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