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Microsoft Reports Record First-Quarter Revenue

Discussion in 'News' started by alexp999, Oct 24, 2008.

  1. alexp999

    alexp999 Staff

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    Microsoft Corp. today announced revenue of $15.06 billion for the fiscal quarter ended Sept. 30, 2008, a 9% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $6.00 billion, $4.37 billion and $0.48, respectively.

    Microsoft showed particular strength in multiyear annuity sales, which grew more than 20% during the quarter from the combined businesses of Client, Microsoft Business Division and Server and Tools.

    “Our customers are asking how they can save money and do more with less,” said Kevin Turner, chief operating officer at Microsoft. “Microsoft is uniquely positioned to help our customers save money through supplier consolidation, increased productivity, and a low total cost of ownership through the depth and breadth of our product portfolio and solutions.”

    Microsoft continued to add to its product and services portfolio with innovative offerings such as Microsoft SQL Server 2008, Microsoft Hyper-V Server 2008 and the first service update to Microsoft Dynamics CRM Online.

    “In a challenging economic environment, the first-quarter results exhibit the strength and diversity of our business model,” said Chris Liddell, chief financial officer of Microsoft.

    Business Outlook

    Microsoft’s business outlook reflects a balance of risks and the likelihood of a continued economic slowdown. The trends seen late in the first-quarter are now forecasted to continue, whereas previous expectations were for the economy to improve in the second half of the fiscal year. In this economic environment, the company is focused on three main actions; working with customers to provide high value products at the lowest total overall cost of ownership, increasing focus on expense management and targeting investment into the highest priority strategic opportunities.

    Microsoft management offers the following guidance for the quarter ending Dec. 31, 2008:
    • Revenue is expected to be in the range of $17.3 billion to $17.8 billion.
    • Operating income is expected to be in the range of $6.1 billion to $6.4 billion.
    • Diluted earnings per share are expected to be in the range of $0.51 to $0.53.

    Management offers the following guidance for the full fiscal year ending June 30, 2009:
    • Revenue is expected to be in the range of $64.9 billion to $66.4 billion.
    • Operating income is expected to be in the range of $24.4 billion to $25.5 billion.
    • Diluted earnings per share are expected to be in the range of $2.00 to $2.10.

    Liddell noted that “we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well.”


    Webcast Details

    Microsoft will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today with Chris Liddell, senior vice president and chief financial officer, Frank Brod, corporate vice president and chief accounting officer, and Bill Koefoed, general manager of Investor Relations, to discuss details of the company’s performance for the quarter and certain forward-looking information. The webcast will be available for replay through the close of business on Oct. 23, 2009.

    Source: Microsoft
  2. niko084

    niko084

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    "diluted earnings per share", you mean shareholders of microsoft actually get their earnings?

    They wont see a dime, just stock value, it all ends up divided among the board as "bonuses".

    Those are some crazy numbers, willing to be their release of windows live helped quite a lot in this as it gives them another niche of market.
    Obviously a new operating system that's getting much better helps too.
  3. thoughtdisorder

    thoughtdisorder New Member

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    Microsoft has positioned the company well over the last 12 months or so to ride out the economic slump (i.e.; Business related products, teaming agreements). Companies will continue to require advancements in software regardless of the economic climate.Well done MS!

    (And nicely written alexp!) :toast:
  4. twicksisted

    twicksisted

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    being the chief financial officer of microsoft must be an easy job lolol
    (sit on your ass and laugh at the complete lack of competitive threats)
  5. KBD New Member

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    :laugh:

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