Friday, October 26th 2007
Vista and Halo Help Microsoft to 27% Growth in Revenue
Microsoft Corp. today announced revenue of $13.76 billion for the quarter ended September 30, 2007, a 27% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.92 billion, $4.29 billion and $0.45, respectively.
"This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999," said Chris Liddell, chief financial officer at Microsoft. "Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future."
Microsoft's businesses of Client, Microsoft Business Division, and Server and Tools grew combined revenue in excess of 20%, and experienced robust demand for Windows Vista, the 2007 Microsoft Office system, Windows Server, and SQL Server.
"Customer demand for Windows Vista this quarter continued to build with double-digit growth in multi-year agreements by businesses and with the vast majority of consumers purchasing premium editions," said Kevin Johnson, president of the Platform and Services Division at Microsoft.
During the quarter, Microsoft's two consumer focused divisions passed milestones with the successful close of the company's largest ever acquisition, aQuantive, and Halo 3 achieving the biggest entertainment launch day in history.
"Backed by an amazing product line-up, our sales force, marketing teams, and partners delivered another excellent quarter," said Kevin Turner, chief operating officer at Microsoft.
Business Outlook
Microsoft management offers the following guidance for the quarter ending December 31, 2007:
Source:
Microsoft
"This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999," said Chris Liddell, chief financial officer at Microsoft. "Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future."
Microsoft's businesses of Client, Microsoft Business Division, and Server and Tools grew combined revenue in excess of 20%, and experienced robust demand for Windows Vista, the 2007 Microsoft Office system, Windows Server, and SQL Server.
"Customer demand for Windows Vista this quarter continued to build with double-digit growth in multi-year agreements by businesses and with the vast majority of consumers purchasing premium editions," said Kevin Johnson, president of the Platform and Services Division at Microsoft.
During the quarter, Microsoft's two consumer focused divisions passed milestones with the successful close of the company's largest ever acquisition, aQuantive, and Halo 3 achieving the biggest entertainment launch day in history.
"Backed by an amazing product line-up, our sales force, marketing teams, and partners delivered another excellent quarter," said Kevin Turner, chief operating officer at Microsoft.
Business Outlook
Microsoft management offers the following guidance for the quarter ending December 31, 2007:
- Revenue is expected to be in the range of $15.6 billion to $16.1 billion.
- Operating income is expected to be in the range of $5.9 billion to $6.1 billion.
- Diluted earnings per share are expected to be in the range of $0.44 to $0.46.
- Revenue is expected to be in the range of $58.8 billion to $59.7 billion.
- Operating income is expected to be in the range of $23.3 billion to $23.7 billion.
- Diluted earnings per share are expected to be in the range of $1.78 to $1.81.
25 Comments on Vista and Halo Help Microsoft to 27% Growth in Revenue
but here in the UK, quite recently actually. that the big daddy of the electrical appliance stores Curries & PC World admitted that their sales of products that were shipped with Vista were a lot harder to sell & less were sold then units that were shipped with XP.
so as it currently stands. buyers are more likely to buy a system that runs XP instead of vista.
I went into my mates uni (University of Westminister for those of you that will be studying here soon/whenever/if ever) & had a chat with some of their IT tech guys & they all said that they were all still running XP & would advise students to do so until there is a proper valid reason for the whole uni to move to Vista.
So If Microsoft cant win the hearts & the minds of organisations such as universities, hospitals & most possibly some coporates (traders in particular) then how can Microsoft say that they have had over 30% growth when nobody wants their product anyway?? not to mention how many copies actually get sold in china with their great big pirate industry churning out fakes but the coffee bean load.
IMHO - XP will be supported until 2010. theres no reason not to stick with XP until vista really starts picking up the pace & becoming a standard
if they claim that their profits are up then good for them. but my comments are based on my own opinions which are based on what i have read/heard & yes PC World has a very big foot print here in the UK usually for their gross over pricing & shoddy customer service but they stll have loads of stores all over the UK
P.S. all those talks about XP better than Vista - sounds familiar, Win2000vsXP? ;)
dont get me wrong i have nothing against microsoft, i think there products are well made and do the job that there meant to do
Naw, can't be that. We're all just jealous of Gates' haircuts, that's it.
Sorry dudes, I like Vista a lot more than XP. I think it's definately worth the $111 OEM. It looks awesome and runs great! I also love watching my quad-core meter gadget ;) ;) ;)
Whenever a program locks up, Windows recovers. The only time I had BSOD is when my CPU was fried
I replaced my motherboard. XP booted - no problems at all. Ubuntu Linux booted - no problems at all. Vista didn't boot - gave me a BSOD and I could not find any way to repair it. All three OSes faced an identical problem, Vista was the only one with any issues and those were pretty major. I admit that some BSOD may be due to drivers, but even so it doesn't change the fact that XP is more stable as a result.
Vista is way better than Win 98 and earlier for blue screens, but I NEVER get them on XP, so any screens at all on Vista is a step backwards IMO.
On the bright side, they can be congratulated for their growth, but the doesn't mean their growth represents quality products.
If i could think of summat to slag vista off about i would,but i cant,so i wont,coz it just runs fine.
As far as Resource hog - lol..... That's like saying Crysis will suck because it required a more powerful graphics card. Get over it. If new software didn't require more advanced hardware, there'd be no point in buying awesome PC components. I'm still not convinced. I've had less problems with vista than i did with XP.
im sure vista will be really good once the creases have been ironed out and i will deffinatley get it once i upgrade my computer with SP1 - but untill then XP works fine, there is no need to upgrade yet.
MS said that they predicted that X amount of units will be sold - how did they come up with that? alot of people arnt going to upgrade an OS for the fun of it - they'll do it when they have to or when there getting a new PC. this is from the view point that not everyone in the world knows how to use a PC, those that can only just get by using one, use it to check email and read the news - why would they want to go through the hassle of upgrading when everything works fine as it is.
if something isnt broke dont fix it!