That gamble paid off handsomely and it reversed the
fortunes of struggling Microsoft, returning it to dynamic growth.
Windows 7 launched in October of last year and proved a commercial
smash. All the Apple commercials in the world couldn't
damper the public enthusiasm about the new operating systems.
And Microsoft stepped up its own populist
ads featuring average Joes and Janes experiencing (or suggesting)
the improvements, fueling further growth.
brand image is at a new high and Microsoft just reported its best
quarter in its history. Microsoft reports a net revenue of
$19.02B USD, a 14 percent increase from the previous year.
Microsoft also reported operating income, net income and diluted
earnings per share of $8.51B USD, $6.66B USD and $0.74 USD per share,
up 43 percent, 60 percent and 57 percent, respectively from a year
ago. The revenue was boosted by $1.71B USD in deferred revenue
7 preorders, among other things.
The key factors in
Microsoft's rejuvenation were Windows 7 and Windows Server 2008 R2.
Since October 22, Microsoft sold 60 million Windows 7 licenses, the
fastest sales pace of any operating system in Microsoft history -- or
world history for that matter.
Peter Klein, chief financial
officer at Microsoft comments, "Exceptional demand for Windows 7
led to the positive top-line growth for the company. Our continuing
commitment to managing costs allowed us to drive earnings performance
ahead of the revenue growth."
Kevin Turner, chief
operating officer at Microsoft adds, "This is a record quarter
for Windows units. We are thrilled by the consumer reception to
Windows 7 and by business enthusiasm to adopt Windows 7."
ahead Microsoft does have some key areas it needs to improve on.
Currently its phone offerings are
in shambles (though a surprise early release of Windows Mobile 7
could change that) and its search business still trails Google,
despite recent gains. Still, Windows 7 has been such a huge
hit, even if all of Microsoft's other units fail to post gains, the
company will still be in pretty good shape. Windows 7 has truly
delivered Microsoft a comeback for the ages.
opened slightly up this morning on the good news, opening at $29.89 a
share, about 2 percent up. Since it has slid slightly to about
$29.29 a share.