Microsoft July-September revenues down at $12.92 billion; net falls to $3.57 billion
23 Oct 2009
Microsoft Corporation today reported revenues of $12.92 billion for the first quarter ended 30 September 2009, down 14 per cent from the same quarter of the previous year.
Operating income, net income and diluted earnings per share for the quarter were $4.48 billion, $3.57 billion and $0.40 per share, representing declines of 25 per cent, 18 per cent and 17 per cent, respectively, when compared with the prior year period.
The results reflect the deferral of $1.47 billion of revenue relating to the Windows 7 upgrade option programme and sales of Windows 7 to OEMs and retailers before general availability, the company said in a release.
Adding back, revenue totalled $14.39 billion, a 4 per cent year-over-year decline, and EPS totalled $0.52 per share, an increase of 8 per cent over the same period of the prior year.
"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," said Chris Liddell, chief financial officer at Microsoft. "We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions," he added.
Windows 7 and Windows Server 2008 R2 launched globally on 22 October as anticipated. Also during October, Microsoft released Microsoft Exchange Server 2010 to manufacturing and in July announced a strategic partnership with Yahoo! Inc to provide search results for their global properties.
"The worldwide launches of Windows 7, Exchange Server 2010 and Windows Server 2008 R2 are exciting milestones for Microsoft, our partners and customers," said Kevin Turner, chief operating officer at Microsoft, adding, "We are pleased by the early positive response we are receiving for these products."
Microsoft said it is reducing operating expense guidance to $26.2 billion to $26.5 billion, for the full year ending 30 June 2010.
