Small Business News

Microsoft Repots Record Revenue

Over the holidays, Microsoft launched a number of new hardware products, including the Xbox One and Surface 2. As it turns out, those product launches combined with its new focus on devices and services led to a record quarter for the Redmond giant.

Microsoft announced today that it has made $24.52 billion in revenue in its second quarter that ended on December 31. Its operating income during Q2 was $7.97 billion and net income was $6.56 billion. It also added $0.78 per share.

“Our Commercial segment continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter,” said Steve Ballmer, chief executive officer at Microsoft. “The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth.”

The devices and Consumer business was the real winner this holiday season as Microsoft saw growth of 13 percent to the tune of $11.91 billion. While Windows 8 sales were down, Microsoft notes that Windows 8 Pro sales were up 12 percent. The launch of the Surface 2 and Surface Pro 2 helped double the Surface division’s revenue to $893 million. As for the Xbox division, the company sold 3.9 million Xbox One consoles and 3.5 Xbox 360 consoles during Q2.

“We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment,” said Amy Hood, chief financial officer at Microsoft. “These results reflect our focus on execution, cost discipline, and long-term shareholder value as we continue to drive the strategic transformation of the company.”

Its enterprise revenue also saw a lot of growth with the division growing 10 percent and earning $12.67 billion in revenue. SQL server, System Center, commercial cloud services and Office 365 all showed explosive growth with revenue and customers growing by more than two times.

“We significantly outpaced enterprise IT spend as we continue to take share from our competitors by delivering the devices and services our customers need as they transition to the cloud,” said Kevin Turner, chief operating officer at Microsoft. “Our commercial cloud services revenue grew more than 100% year-over-year, as customers are embracing Office 365, Azure, and Dynamics CRM Online, and making long-term commitments to the Microsoft platform.”

This will probably be the last quarterly report with a statement from Steve Ballmer. Enjoy it while it lasts.

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