Thursday, October 24th 2013

Microsoft Reports Record First-Quarter Revenue of $18.53 Billion

Microsoft Corp. today announced revenue of $18.53 billion for the quarter ended September 30, 2013. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $13.42 billion, $6.33 billion, $5.24 billion, and $0.62 per share.

These financial results reflect the deferral of $113 million of revenue primarily related to Windows 8.1 Pre-sales. All growth comparisons in the press release relate to the corresponding period in the last fiscal year, unless otherwise noted.

The following table reconciles these financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company's performance.
"Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers," said Steve Ballmer, chief executive officer at Microsoft. "Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices."

"We saw strong focus across our teams, generating record first-quarter revenue even as we navigate a fundamental business transition. Our enterprise renewals were very healthy and our devices and consumer business continued to improve," said Amy Hood, chief financial officer at Microsoft. "We are making strategic investments in areas like technological innovation, supply chain management, and global cloud operations to build for the future and create long-term shareholder value."

Devices and Consumer revenue grew 4% to $7.46 billion.
  • Windows OEM revenue declined 7%; Windows Pro revenue grew for the second consecutive quarter.
  • Surface revenue grew to $400 million with sequential growth in revenue and units sold over the prior quarter.
  • Search advertising revenue grew 47% driven by an increase in revenue per search and volume.
Commercial revenue grew 10% to $11.20 billion.
  • SQL Server revenue grew double-digits, with SQL Server Premium revenue growing more than 30%.
  • Lync, SharePoint, and Exchange, our productivity server offerings, collectively grew double-digits.
  • Commercial cloud revenue grew 103%.
"We continue to execute well across our businesses and we are seeing robust demand for our enterprise products and cloud services. Strong customer adoption of Office 365, Azure, and Dynamics CRM Online is accelerating our business transition to the cloud," said Kevin Turner, chief operating officer at Microsoft. "Our investments in SQL database platform, Hyper-V, System Center, and Lync are driving market share gains as these comprehensive solutions enable customers to increase their insight and efficiency."
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23 Comments on Microsoft Reports Record First-Quarter Revenue of $18.53 Billion

#2
Tonduluboy
In my state there are around 3 million residents, and ONLY 1 APPLE MAC Store... OTHER pc store selling PC/LAPTOP bundle with microsoft.

Looking at this statement, you must say This Apple store must be making at lot of money!
No it is NOT. This is why Microsoft getting high revenue!
Posted on Reply
#3
Dent1
by: Tonduluboy
In my state there are around 3 million residents, and ONLY 1 APPLE MAC Store... OTHER pc store selling PC/LAPTOP bundle with microsoft.

Looking at this statement, you must say This Apple store must be making at lot of money!
No it is NOT. This is why Microsoft getting high revenue!
Actually Apples Q4 revenue last year was 54.5 Billion :)


Also Apple is a high end niche product, to remain niche it's important they don't over saturate the market. Hence why there are fewer store locations.
Posted on Reply
#4
Frick
Fishfaced Nincompoop
Physical stores has little to do with how good they sell. I have like 1000km to the nearest Apple store and their stuff still sell like hotcakes.

And high end smartphones is not a niche market. It might be narrow in scope, but the amount of phones there is staggering and they sell like hotcakes.
Posted on Reply
#5
digibucc
by: Frick
And high end smartphones is not a niche market. It might be narrow in scope, but the amount of phones there is staggering and they sell like hotcakes.
not disagreeing but i assume he was talking about the actual computers, someone owning a mac today is still much less common than someone owning a pc. whereas smartphones you are right, and i see more people with iphones than anything else.
Posted on Reply
#6
Jetster
Apple is selling a lot of tablets also. Its proof that people are stupid .
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#7
erixx
Win 8(.1)/Surface freaking rules, I just love it more and more every day !!!! :)
(I have no MS stocks, but I know I should hahahahaha)
Posted on Reply
#8
phanbuey
yes nice job company that's trying to kill the desktop pc... windows 8 and byzantine pricing on your commercial products FOREVAH!!!
Posted on Reply
#9
Easy Rhino
Linux Advocate
by: Jetster
Apple is selling a lot of tablets also. Its proof that people are stupid .
please explain?
Posted on Reply
#10
Frick
Fishfaced Nincompoop
by: Jetster
Apple is selling a lot of tablets also. Its proof that people are stupid .
You mean they are stupid to buy a good tablet?

by: phanbuey
yes nice job company that's trying to kill the desktop pc... windows 8 and byzantine pricing on your commercial products FOREVAH!!!
Yes. MS is secretly financing Apple and Google and all the OEM's in order for them to make more tablets and smartphones, which competes with MS products. It's all coming together.
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#11
TheHunter
Apple is not that popular here, but for some reason there are at least 4-5 Apple stores in an area of 15km xD, one or two of them are in a big shopping center.
Posted on Reply
#12
de.das.dude
Pro Indian Modder
and they bought nokia too!
Posted on Reply
#13
de.das.dude
Pro Indian Modder
by: TheHunter
Apple is not that popular here, but for some reason there are at least 4-5 Apple stores in an area of 15km xD, one or two of them are in a big shopping center.
lol same here, dont know why but there's one in my neighbourhood and one 10mins away XD
Posted on Reply
#14
HossHuge
With the amount of online buying that goes on now especially with computer products the amount of physical stores means squat.
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#15
Jetster
by: Easy Rhino
please explain?
Don't like Apple. They are pretentious, overpriced, lack features, and proprietary. Also don't like tablets in general. But its mostly just a rant over a few experiences Ive had so try not to take it too personally.
Posted on Reply
#16
Easy Rhino
Linux Advocate
by: Jetster
Don't like Apple. They are pretentious, overpriced, lack features, and proprietary. Also don't like tablets in general. But its mostly just a rant over a few experiences Ive had so try not to take it too personally.
well i think you are stupid. try not to take it too personally.
Posted on Reply
#17
Jetster
by: Easy Rhino
well i think you are stupid. try not to take it too personally.
Clearly I can be :)
Posted on Reply
#18
anonymous6366
by: Jetster
Apple is selling a lot of tablets also. Its proof that people are stupid .
haha I kinda agree
Posted on Reply
#19
digibucc
For myself I wouldn't ever again (G3, G4, Ipod Touch) pay retail for an apple device. it's just not worth it to me. they are top quality, but I just can't get over how locked down they are. I don't care if it's necessary, I want to be able to look at the inner workings and mess around.

I actually really like Max OS X in all it's flavors, I just am not a fan of IOS. their hardware is always superb... When it comes to desktops/imacs though it's just the price.
Posted on Reply
#20
Easy Rhino
Linux Advocate
by: digibucc
For myself I wouldn't ever again (G3, G4, Ipod Touch) pay retail for an apple device. it's just not worth it to me. they are top quality, but I just can't get over how locked down they are. I don't care if it's necessary, I want to be able to look at the inner workings and mess around.

I actually really like Max OS X in all it's flavors, I just am not a fan of IOS. their hardware is always superb... When it comes to desktops/imacs though it's just the price.
the only thing i dislike about iDevices is that they are so locked down. i wish there was better integration for linux devices. i know that technically it is possible but i doubt it will ever be done for business reasons.
Posted on Reply
#21
de.das.dude
Pro Indian Modder
they sell more because THEY ARE LOCKED DOWN. Dumb people dont need to bother with more things so they like the stuff.

Its called knowing your audience XD
Posted on Reply
#22
Frick
Fishfaced Nincompoop
If it's locked down or not doesn't matter on a phone (and tablets) for 99.99% of the population, for various good reasons.
Posted on Reply
#23
zack tyler
Microsoft on the rise

Microsoft has proved all its doubters wrong by exceeding all analyst expectations. The revenues reported exceeded analyst expectations by $700 million. Growth in all segments was higher than estimated.
Although the PC demand remains volatile, the growth in the consumer segment was largely attributable to Microsoft’s Office 365, Skype and SkyDrive. The other reason for the growth in this segment was the Microsoft surface tablets which have started to gain traction in the market and with the acquisition of Nokia, Microsoft expects to increase its share by 15% in the smartphone market.
Hardware revenues are expected to grow 35-45% because of the surface tablet gaining share and the upcoming launch of the new Xbox one in the holiday season.
All the implementations of new policies indicate only one thing for Microsoft, That good days lie ahead.
http://goo.gl/MJ6lzq
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