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
11/7/2007 10:08:13 AM
Who needs vista ultimate anyways? Home premium is more than enough for most people.
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
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
Microsoft Axes 1,500 Misleading Windows Apps, Crackdown Ongoing
August 28, 2014, 11:56 AM
Dropbox Bows to Competitive Pressure, Provides 1TB of Storage for $10/Month
August 27, 2014, 11:17 AM
Microsoft: Roughly 25,000 Win8.x Users See Blue Screens After Botched Patch
August 25, 2014, 12:50 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
HP Just Can’t Quit Windows 7; Offers Customers $170 Discounts on Windows 7 Laptops
August 21, 2014, 8:40 AM
Microsoft Wants Windows 8.1 Inside Children's Toys, Appliances
August 20, 2014, 3:20 PM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
LG Posts Teaser Video of Its “Round Face” G Watch R Smartwatch, Set for IFA Lauch
August 24, 2014, 2:49 PM
Windows 9: "Upgrade Now" Button Coming for Enterprise Updates, ARM Preview in H1 2015
August 26, 2014, 8:00 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information