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  (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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RE: Small fish?
By inighthawki on 7/22/2010 7:25:54 PM , Rating: 2
quote:
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
"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates














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