Microsoft Records Sharp Increase in Q1 Profits, Credits Vista and Halo 3
October 26, 2007 9:25 AM
comment(s) - last by
Microsoft credits Vista and Halo 3 for strong fiscal Q1 2008 performance
Microsoft sees its fastest Q1 since 1999
We've heard from three major tech companies regarding third quarter performance over the past two weeks.
were both up, while
AMD reported its third straight quarter of losses
Today, it's Microsoft's turn and its results for fiscal Q1 2008 were quite impressive. The Redmond, Washington-based company recorded operating income of $5.92 billion USD and net income of $4.2 billion USD on revenues of $13.76 billion USD. Microsoft's revenue for Q1 represented a 27 percent increase from fiscal Q1 2007 and marks its best fiscal Q1 performance since 1999.
"This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999," said Microsoft CFO Chris Liddell. "Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future."
Not surprisingly, Microsoft also attributed a good portion of its growth to the success of
which launched in
late November 2006 for OEMs
late January 2007 for consumers
"Customer demand for Windows Vista this quarter continued to build with double-digit growth in multi-year agreements by businesses and with the vast majority of consumers purchasing premium editions," said Kevin Johnson, remarked Microsoft Platform and Services Division at Microsoft President Kevin Johnson.
On a division-specific basis, Microsoft's Client, Server and Tools, Business, Online Service and Entertainment and Devices divisions reported Q1 2008 revenue growth of 25 percent, 16 percent, 20 percent, 25 percent and 91 percent respectively compared to fiscal Q1 2007.
The big jump in the Entertainment and Devices division can be attributed to none other than
$170 million USD within a 24-hour period
and raked in
over $300 million USD during its opening week
The release of
also allowed Microsoft's Xbox 360 to outsell Nintendo's Wii console for the first time during the month of September. The company
managed to move 527,000 Xbox 360s during September
compared to 501,000 Wiis. This marks a dramatic improvement from the Xbox 360's August numbers of
-- itself a big jump from July's tally of
's release was so profound that Hollywood
blamed that lackluster box office debut of
The Heartbreak Kid
on Master Chief's third adventure.
's financial impact was also enough to lift Microsoft's Entertainment and Devices division from a loss of $142 million USD during fiscal Q1 2007 to a $165 million USD profit.
Thanks to Microsoft's strong fiscal Q1 2008 performance, it's raising its outlook for fiscal 2008 performance. Its revenue forecasts are being adjusted from the $57.3 billion USD to $59.2 billion USD range. Operating income forecasts are also being raised to $23.5 billion USD from $22.45 billion USD.
This article is over a month old, voting and posting comments is disabled
RE: Customer Demand?
10/26/2007 10:34:02 AM
What MFG would actually void your warranty for changing the OS?
I've heard of not offering tech support for an alternate OS, which is understandable. I don't see any way they could legitimately void the warranty though.
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
Apple Profits Soar 67% As It Sets Sales Records
October 23, 2007, 1:05 PM
Xbox 360 Beats Wii in September Console Sales
October 19, 2007, 3:00 PM
AMD Records $396 Million USD Net Loss for Q3
October 19, 2007, 9:17 AM
Intel Quarterly Profit up 43 Percent
October 16, 2007, 9:39 PM
Halo 3 Blamed for Poor Hollywood Box Office Results
October 16, 2007, 4:28 PM
Windows 10 Build 10049 Installation May Take Hours, Will Fail if You Have < 8 GB
March 31, 2015, 2:59 PM
Windows 10 Build 10049 Airs, Complete With Project Spartan Browser
March 30, 2015, 7:12 PM
Office 2016 Preview Comes to Mac w/ Retina Support
March 6, 2015, 3:32 PM
Microsoft May Announce Windows 10 Release Candidate at Ignite
March 6, 2015, 9:25 AM
Windows 10 Testers: Beware Experimental NVIDIA Drivers Tied to DX12 Update
March 3, 2015, 11:13 AM
Windows 10 Adds USB 3.1 for Dual-Role Peripherals, External Display Support
February 27, 2015, 11:39 AM
Most Popular Articles
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
Food Chemists at Italy's Barilla Claim to Have Perfect Instant Noodles w/out Frying
March 26, 2015, 4:25 PM
Apple CEO's Pledge to Give Away His Fortune is Worth More Than Face Value
March 27, 2015, 5:08 PM
Church of Scientology Buys Twitter, Facebook Space to Attack HBO Documentary
March 30, 2015, 4:27 PM
Google Readies Gmail "Pony Express" to Combat Facebook's Messenger Payments
March 25, 2015, 11:43 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information