the three months ended Sept. 30, Microsoft said it earned $5.41 billion
in net income, or 62 cents per share, on revenue of $16.2 billion.
Sales were up 25 percent from a year earlier, although the prior year
results included the effects of a deferral of revenue ahead of the
Windows 7. Without that, sales were up 13 percent and net income rose 16 percent.
"This was an exceptional quarter combining solid enterprise growth and
continue strong consumer demand for Office 2010, Windows 7 and
Xbox 360," CFO Peter Klein said in a statement.
The company also said it is seeing strong sales of long-term enterprise
agreements with business customers. "We are seeing improved business
demand and adoption," Chief Operating Officer Kevin Turner said in a
Shares of Microsoft, which rose less than 1 percent in regular trading
today ahead of the earnings report, were trading after hours at $26.56,
up 1 percent from the $26.28 closing price.
The company earned $4.3 billion from its Windows and Windows Live
division, on revenue of $4.79 billion, as PC sales grew by an estimated 9
percent to 11 percent from a year ago.
Buoyed by the release of Office 2010, the Microsoft Business division
posted $3.39 billion in earnings on sales of $5.13 billion. Overall
revenue was up 14 percent, although consumer sales grew at more twice
the rate of business spending.
The Server and Tools unit posted a $1.63 billion operating profit on
revenue of $3.96 billion as the company saw double digit growth in both
multi-year agreement and one-time sales as well as a pick-up in the mix
of premium versions of Windows Server. Additionally, the company said
subscriptions of its still new Windows Azure grew 40 percent
However, despite an increase in online advertising revenue, Microsoft
continued to lose money in its online services unit, which lost $560
million in the quarter, on revenue of $527 million.