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: Video game division profitable?!
10/26/2007 11:04:21 AM
I agree as well....when it's not in transit to or from the repair center.
RE: Video game division profitable?!
10/26/2007 11:30:26 AM
I can imagine that for the next gen console the boys in redmond are going to be complete QA nazi's (my 360 is on it's way to Houston right now :(). That's the acheles heal of the 360, poor QA work...
It's worth noting though, that my console didn't RROD (when I uses this I think self destruct due to heat to the point of no operation other than lights). Mine just puts up a single red light, throws out E 74 and tells me there's a hardware issue in 10 different languages, so lord only knows what is wrong with it (tried removing all but composit inputs and it still didn't work). Perhaps the DVD drive croaked, it did start making weird noises associated with the optical drive ::sigh::
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
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
Quick Note: Whoops, Microsoft Pushed Unwanted Windows 10 to Some Users
October 15, 2015, 9:04 PM
Quick Note: Windows 10 Insider Preview Build 10565 Fixes Boot Camp 6.0 Issues
October 13, 2015, 11:39 AM
Microsoft's HD-500 ("Display Dock"), the Magic Sauce Behind Continuum
October 6, 2015, 5:30 PM
Quick Note: Windows 10 Hits 110 Million Devices, VMs
October 6, 2015, 4:30 PM
Windows 10 on Raspberry Pi, IoT Devices Sees Developer Debut
August 12, 2015, 2:41 PM
Sony Issues Bizzare "Do Not Update" Edict to VAIO PC Owners
August 11, 2015, 9:42 PM
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 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information