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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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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


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