Print 32 comment(s) - last by roadhog1974.. on Jul 27 at 9:28 AM

  (Source: AFP)
Microsoft still has quite a bit of gas left in the tank

Apple isn't the only tech company rolling around in cash these days. Just two days ago, Apple announced total Q3 revenue of $15.7 billion and profit of $3.25 billion.

Microsoft reported Q4 earnings today and its results were equally impressive. Microsoft announced quarterly revenue of $16.04 billion and a net profit of $4.52 billion. Revenue and net profit were up 22 percent and 48 percent respectively from the same period a year ago.

Not surprisingly, Windows 7 has been a smash hit for Microsoft and the company announced that over 175 million licenses have been sold. And despite the report which came out last week saying that Office 2010 sales were starting off weak, Microsoft says that it had a "successful launch of Office 2010".

“This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum,” said CFO Peter Klein. “The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion.”

Revenue was up for all of Microsoft's major divisions, as indicated by the following increases from the previous year:

  • Windows & Windows Live Division -- $4.5B (44 percent increase)
  • Server and Tools -- $4B (14 percent increase)
  • Microsoft Business Division -- $5.2B (15 percent increase)
  • Entertainment and Devices Division -- $1.6B (27 percent increase)

“We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2010,” said COO Kevin Turner. “Our transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and we look forward to continuing our product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox Kinect.”

Microsoft's strong Q4 must be music to Steve Ballmer's ear after a recent report came out this week calling for his ouster due to Microsoft's stagnant stock price. However, Ballmer must still show that his company is ready to tackle the exploding smartphone market with Windows Phone 7.

KIN may have been an embarrassing debacle for Microsoft, but it is a relatively small fish in the grand scheme of things -- Windows Phone 7 needs to be a hit for Microsoft to look credible in the consumer mobile devices sector.

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do you think?
By shin0bi272 on 7/23/2010 7:39:01 AM , Rating: 2
Do you think we can get a price cut on win7 now? I mean 220 bucks for win7 ultimate is a tad high for an OS that's going to have hundreds of patches out for it in a year or so.

RE: do you think?
By shin0bi272 on 7/23/2010 7:40:33 AM , Rating: 1
Oh btw thats 220 for the upgrade its 320 for the full version of ultimate... such a rip off.

RE: do you think?
By Smilin on 7/23/2010 10:47:30 AM , Rating: 5
it's been 99 for "home" upgrade, 199 for pro ugprade and home full, 299 for pro full for going on 15 years now hasn't it?

I mean really MSFT has never really raised the price of their OS since like Win95 or 98 so. Many people used XP for 7 years and likely payed for a $99 upgrade.

Sorry man but your please about things being over priced are falling on my deaf ears.

Go buy an apple... (note: borrowed this from a cnet comment)
Mac OS 10.0 Public Beta $30
Mac OS 10.0 - $129 - technically a beta
Mac OS 10.1 - $20 to $129 - a fix for the beta
Mac OS 10.2 - $129 stability fix
Mac OS 10.3 - $129 something you could use to do basic task
Mac OS 10.4 - $129 something you could use on a daily basis
Mac OS 10.5 - $129 pointless update that deleted user data stored on different partitions when tried to copy it.
Mac OS 10.6 - $29 maintenance update for Leopard.

$695 worth of bug fixes - definitely not priceless.

RE: do you think?
By roadhog1974 on 7/27/2010 9:28:59 AM , Rating: 2
Do you need to buy every version or could byou say buy
10.0 then skip to 10.4?

RE: do you think?
By darklight0tr on 7/23/2010 10:43:19 AM , Rating: 2
What do you absolutely need in the the Ultimate version that isn't offered in the other (and cheaper) versions of Windows 7?

The only real difference between 7 Ultimate and 7 Pro is language packs and Bitlocker.

RE: do you think?
By Silver2k7 on 7/23/2010 11:37:19 AM , Rating: 1
uhm... Vista only had Virtualization in Ultamte version IIRC.. no idea how they have done with Seven.

RE: do you think?
By Sivar on 7/23/2010 1:00:06 PM , Rating: 2
Said as if Microsoft's products haven't been among the most secure since the company implemented the SDL (Secure Development Lifecycle). :)

Mobile division?
By superPC on 7/22/2010 9:54:15 PM , Rating: 2
Ehm could anyone tell me where the revenue for MS mobile OS? is it under entertainment and device divisions? because 1.6 billion for the XBOX and mobile phone revenue is pitiful (if you compare it to 8 million iphone sold in a year which in itself amounts to about 1 billion). Hopefully their windows mobile 7 would be enough to fight google and apple.

RE: Mobile division?
By inighthawki on 7/22/2010 10:17:15 PM , Rating: 2
Well, for starters, remember that this is revenue per quarter , meaning the total revenue per year on that "Entertainment and Devices Division" section is four times that amount ($6.4B). Also, my guess would place the mobile development under "Windows & Windows Live Division" since it technically is a copy of Windows. Maybe not the desktop version everyone first thinks of, but it is called windows mobile 7

By qkool on 7/22/2010 11:50:35 PM , Rating: 2
I know it's a blog but

sales were starting off week

week = weak

RE: week?
By w1z4rd on 7/23/2010 5:54:32 AM , Rating: 2
Thanks - i get irritated myself over small little things like that - These are meant to be journalists right?

Economic indicator?
By lothar98 on 7/23/2010 12:00:07 PM , Rating: 2
After reading the article the question that I was left with is "when does this start to translate into jobs?" When you see that revenue is up that much for some key departments in Microsoft it would seem to indicate that spending has risen in both consumer and business markets.

RE: Economic indicator?
By Da W on 7/23/2010 2:11:57 PM , Rating: 2
It's coming. Look at all past 10 recessions, the first year after is always like this year. Jobs lag, but eventually come. Intel and Microsoft are big forward economic indicators this time i think.

This is why you can't count MS out
By nafhan on 7/22/2010 8:48:34 PM , Rating: 2
This is why it's so ridiculous when people say X product from X is totally going to kill MS. It seems like they don't usually get a product right on the first try, but they've got the revenue stream and the cash in hand to give it a second, third (etc.) try. I'll count MS out of an important market when they are out of money - period.

Opera ?
By Silver2k7 on 7/23/2010 11:40:46 AM , Rating: 2
Does Ballmer sing opera in that picture or what is he doing :D

Wow $16B
By jdsal on 7/26/2010 12:01:02 AM , Rating: 2
I'd just like to have $5000 to put a deck on my house. MS please just put a tiny little bit in my pocket. Hell, I buy enough of your software in my line of work... sheesh.

Small fish?
By sebmel on 7/22/10, Rating: -1
RE: Small fish?
By inighthawki on 7/22/2010 7:25:54 PM , Rating: 2
Fortunately, Microsoft charges much higher profit margins than Apple, so they can afford it

What products exactly are you referring to, windows? I mean, if you count it as $200+ for a dvd that costs 5 cents, well then yeah, I suppose if you put it that way those are high profit margins on the product, but there is a lot of behind the scenes cost that goes into something like that. Don't count out development and testing costs.

RE: Small fish?
By sebmel on 7/22/10, Rating: -1
RE: Small fish?
By jjmcubed on 7/22/2010 7:25:32 PM , Rating: 2
I'll make sure to pass on your thoughts to Steve.

RE: Small fish?
By petrosy on 7/22/2010 8:10:58 PM , Rating: 5
You can not compare the 2 companies....

MS has a software portfolio Steve J could only dream of.

Yes their R&D budget is 10x Apples but they probaby have 100x the software portfolio.

Do you know what a $700mil budget gets you... a friking rubber band for your toy phone!

RE: Small fish?
By sebmel on 7/22/2010 8:26:59 PM , Rating: 5
"Do you know what a $700mil budget gets you... a friking rubber band for your toy phone!"

ha ha! That made me smile. :-)

RE: Small fish?
By icanhascpu on 7/26/2010 12:56:13 AM , Rating: 2
Yeah man they probably have like 100billionzillionx more!!!1

RE: Small fish?
By Mitch101 on 7/22/2010 8:21:09 PM , Rating: 2
Microsoft is paying attention to the details taking all the things Apple and Droid did right.

Microsoft is giving Windows Mobile 7 devices to 90,000 of their employees Similar to what Apple did with the iPhone. They are also going to give them to the people who purchase a kin. After all whats another 50 people. ;) Not Microsoft's fault but the carriers service plans that killed the kin.

Microsoft is also paying the top developers to port their iPhone apps/games to the Mobile 7 platform and might even be moding the language base to make the port much easier. Really they only need to pay the top 100 apps to be ported to get the attention is needs. Does anyone really need 100,000 apps?

As for the delays I suspect Microsoft realizes it needs killer apps to make it attractive and thats what they are building up to.

The rumor is the Zune HD2 is based on identical hardware that the Mobile 7 phone device will have and between the Mobile 7 Phone and Zune HD2 if done correctly they will be able to target the PSP and Nintendo DS market too.

Two devices similar hardware multiple markets.

The smartest thing Apple is finally doing or is able to do is getting out from Under AT&T. T-Mobile is getting the iPhone soon and Verizon around January.

The illusion is Microsoft vs Apple the reality is Microsoft/Apple vs Google.

RE: Small fish?
By sebmel on 7/22/2010 8:34:34 PM , Rating: 2
"The illusion is Microsoft vs Apple the reality is Microsoft/Apple vs Google."

I'm not sure that Google is the threat DTech suggests. The Chinese have taken Android and developed it for themselves... linking to their own services... cutting out ad revenue for Google. Android will fragment.

I think the outsider entering the race will be Samsung. Most devices Apple makes are flash based (even the Mac will be shortly) and Samsung is a big flash memory player. All they need to do is develop Android in-house and they become an OS + hardware manufacturer, like Apple, but with an enormous advantage of in-house flash prices.

If Samsung make a good, cheap Android based iPad competitor they become a big player overnight.

The Microsoft Tick Tock
By Shig on 7/22/10, Rating: -1
RE: The Microsoft Tick Tock
By Gungel on 7/22/2010 8:44:28 PM , Rating: 2
So Windows 8 will be terrible by your logic.

RE: The Microsoft Tick Tock
By Etsp on 7/22/2010 10:40:24 PM , Rating: 2
I don't agree that it will be terrible. But I do see a bit of a pattern. It's possible that Windows 8 will come with a slew of new features, with some of them being kinda clunky, and Windows 9 will have those features highly polished, along with some additional features thrown in on top.

Such was the case of Windows 95 to Windows 98, Windows 2000 to Windows XP, Windows Vista to Windows 7.

RE: The Microsoft Tick Tock
By MindParadox on 7/23/2010 5:05:30 AM , Rating: 2
hey, dont forget Windows Millenium :P

wait, on second thought, lets forget it after all :)

Apostrophes Cause Catastrophes!

The word you are looking for is, Ridiculous. You cannot "Diculous", therefore, you cant do it again either, so there is no "Rediculous"!

RE: The Microsoft Tick Tock
By Etsp on 7/23/2010 11:07:53 AM , Rating: 2
Oh, I didn't forget. Millennium Edition would have been a "tick" cycle. It was just too terrible to try to fix up though, so they never made a "tock" counter-part.

RE: The Microsoft Tick Tock
By monomer on 7/23/2010 4:15:27 PM , Rating: 3
This isn't quite right. I think you mean WinME to WinXP, and not 2000.

Windows 2000 was considered an excellent OS, and many users refused to upgrade to XP for quite some time because of the performance and activation shenanigans.

That said, Win2K was really supposed to be the enterprise version (successor to NT), while WinME was supposed to be the consumer version, and most everyone would agree that ME sucked balls.

RE: The Microsoft Tick Tock
By Etsp on 7/23/2010 6:56:31 PM , Rating: 2
Not quite. Windows XP is the successor to Windows 2000. XP added a good amount of polish to the features that existed in Windows 2000.

Not that Windows XP was without problems when it launched....

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer

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