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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 gramboh on 10/26/2007 12:52:16 PM , Rating: 3
My GF bought a Dell notebook with a Core 2 1.83GHz cpu, 2GB ram, 120GB 7200rpm HDD which came with Vista Home Premium. It runs pretty damn smoothly for desktop/office type use. It honestly doesn't feel much slower than my desktop (Core 2 @ 3.3GHz, 4GB DDR2, Vista x64).

UAC is a GOOD thing for security! Again, it is applications requiring root privledges which they often don't need that cause the pop-ups to happen a lot. Use task scheduled to auto-run stuff you trust on boot and then email developers to complain about stuff requiring root priv that shouldn't.

RE: Customer Demand?
By yost007 on 10/26/2007 1:25:01 PM , Rating: 2
My GF bought a Dell notebook with a Core 2 1.83GHz cpu, 2GB ram, 120GB 7200rpm HDD which came with Vista Home Premium

My sister bought a Dell with AMD T56 or 58 and 2GB of ram (Mine has a C2D T7200). The weird thing is that when we compared our Windows Vista Advisor Ratings, hers was a 5.9 for ram and mine was only 4.1. This is strange because we have the same type and amount of ram.

Also in task manger her memory usage hover around 750 and mine is 930mb. We have the same anti-virus software. Plus after memory allocations for installed devices my pc acutally has 74mb (2032 total) more installed ram as stated in the control panel.

There must be other programs running in the background that are affecting its resources that I am unaware of, but the largest uses are msn at 84mb then dwn.exe at 57mb.

But for the most part it is pretty peppy at most things (Except for booting-up it takes about 4 minutes).

"I modded down, down, down, and the flames went higher." -- Sven Olsen
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