Microsoft Unveils Record Quarterly Revenues [Update] News
Jon Wilcox
26/01/2007
But the Entertainment and Devices Division continues to post stagnant operating losses...
Microsoft has today announced details of its financial performance during the second quarter of the 2006/07 fiscal year, which ended on December 31st 2006. Posting revenues of $12.54 billion (£6.40 billion) for the quarter, up by over $700 million (£357.0 million) on the year, the Corporation did announce that the figures took into account a deferral of $1.64 billion (£836.4 million) from the second to the third quarter. Operating income and net income were both down on the same period last year, standing at $3.47 billion (£1.77 billion) and $2.63 billion (£1.34 billion) respectively.
Announcing the results for Microsoft as a whole, Chris Liddell, Chief Financial Officer at Microsoft commented: "Results this quarter exceeded our expectations across the board, with revenue growth at or above our high end guidance for all divisions...Healthy PC and server markets as well as broad-based business and consumer demand for Microsoft offerings fueled revenue growth this quarter."
"The execution of our field sales and marketing teams were a major contributor to this quarter's extremely positive results," said Kevin Turner, Chief Operating Officer at Microsoft. "Customers have responded positively with strong contract renewals and license sales. We are pleased with such strong financial results and look forward to making Windows Vista and the 2007 Microsoft Office system widely available to all customers next week."
Looking specifically at the Corporation's Entertainment & Devices Division, which includes Xbox 360, revenues were also up on the year, from $1.69 billion (£862.0 million) in 2005/06 to $2.96 billion (£1.51 billion). The division's operating loss continued to be fairly stagnant, increasing slightly from $286 million (£145.9 million) in the second quarter of 2005/06 to $289 million (£147.4 million).
Looking ahead to the third quarter and the full fiscal year, which occur on March 31st and June 30th respectively, Microsoft has confirmed expectations for revenues in Q3 of between $13.7 billion (£6.99 billion) and $14.0 billion (£7.14 billion). Operating income for the Corporation as a whole is expected to be between $6.1 billion (£3.11 billion) and $6.3 billion (£3.21 billion) for the three month period. Revenue for the full fiscal year is expected to be between $50.2 billion (£25.61 billion) and $50.7 billion (£25.86 billion), with operating income of between $19.3 billion (£9.84 billion) and $19.7 billion (£10.05 billion).
[Update] Following the release of the financial figures, Microsoft CFO Chris Liddell confirmed that it had revised projected figures for Xbox 360 by the end of the fiscal year in June, from 13-15 million to 12 million.
amerikanac1990
Date Added:Sat 27th Jan 2007 14:58