I missed Microsoft’s earnings release last week (I was on a flight back from my vacation), so here’s a look back. Microsoft’s revenue for its second quarter were up 30% to $16.37 billion, and profit was up 92% to $6.48 billion.
Based on the last six months, Microsoft now brings in $60 billion a year and profits to the tune of about $25 billion a year, enough to buy a Yahoo every once in a while.
By division:
Client (operating systems for PCs): Revenue – $4.335 billion, up from $2.586 thanks to Windows Vista. Profit – $3.358, up from $1.838.
Server and Tools: Revenue – $3.278 from 2.843, profit – $1.172 from $981 million.
Online Services Business (Windows Live and MSN): Revenue – $863 from $625 million, losing $245 million, as opposed to $118 million a year earlier.
Entertainment and Devices Division (Xbox, Zune and others): Revenue – $3.060 billion, up from $2.969 billion and representing a profit of $357 million, as opposed to a loss of $302 million a year earlier. The profit, despite a gain in revenue of only $91 million, implies the division is profiting by spending less, not just because of Halo 3, and is thus becoming a healthy division with a real future.
Joe Wilcox has a detailed look at the earnings.
Microsoft’s earnings were considered a success by Wall Street, coming during the same quarter that saw dissapointing earnings by Apple, Google, Yahoo and Intel.
Other news: Microsoft offered $1.2 billion to buy Norwegian search firm Fast Search & Transfer, a 42% premium on the stock.
Also, Microsoft hired a new Chief Information Officer, picking up Tony Scott, former CIO of Disney. Ironically, he replaces outgoing CIO Stuart Scott, which means the company will save money by only having to change part of the letterhead. Chuckles.
