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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. Intel and Apple 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 Windows Vista which launched in late November 2006 for OEMs and 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 Halo 3. Halo 3 generated $170 million USD within a 24-hour period and raked in over $300 million USD during its opening week.

The release of Halo 3 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 276,000 units -- itself a big jump from July's tally of 170,000 units.

Halo 3's release was so profound that Hollywood blamed that lackluster box office debut of The Heartbreak Kid on Master Chief's third adventure.

Halo 3'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.

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RE: Customer Demand?
By GreenyMP on 10/26/2007 11:38:40 AM , Rating: 5
A P4 desktop processor 3.2GHz is faster than a 2.0 or 2.16 GHz processor.

Completely true if when you say faster you mean faster at pushing operations through the pipeline. But what you infer is that the P4 at 3.2GHz will out-perform the Core 2 Duo at 2GHz. And that is just not true.

You could probably find one benchmark of some random application that shows the P4 3.2 outperforming the Core 2 Duo at 2GHz. But for the most part the Core 2 Duo will have a 20-30% performance advantage.

The rest of your argument is sound. Bus speeds, memory speeds, and graphics processors on laptops will typically eat up a 20-30% performance advantage in a hurry.

RE: Customer Demand?
By afkrotch on 10/28/2007 10:42:52 PM , Rating: 2
I think you missed part of his post or something, if you think it's sound.

His stupid arguement about the P4's hyperthreading. Sure HT is great an all, but a single core P4 with HT isn't going to work better than dual cores.

Anyways, some benches. (has the Athlon X2 3800+ beating a bunch of Pentium Ds)
(has the mobile Core Duo matching the desktop Athlon X2 3800+) (has the mobile Core 2 Duo beating the mobile Core Duo)

So far what all those tests show is....

Mobile Core 2 Duo > Mobile Core Duo = Desktop Athlon 64 X2 3800+ > Pentium D

I couldn't find a benchmark showing the Pentium D being better than the regular Pentiums, but I don't think I really need to bother doing that.

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