Microsoft Reports Earnings: $16 Billion in Revenue, $4.5 Billion in Net Profit
By on October 19th, 2012

Microsoft has announced its earnings for Q3 2012 (Q1 FY2013). It generated $16.01 billion in quarterly revenue, and operating income of $5.31 billion. It made a net profit of $4.47 billion. The revenue numbers don’t include $1.36 billion in deferred revenue related to Windows 8 upgrades and pre-sales.

Steve Ballmer, Microsoft’s CEO, said:

“The launch of Windows 8 is the beginning of a new era at Microsoft. Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”

Kevin Turner, Microsoft’s COO, said:

“We’re incredibly excited to be approaching general availability of Windows 8 and Windows RT. We’ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooks and all-in-ones to the most powerful desktop computers.”

Microsoft’s Business Division posted $5.5 billion in revenue in the last quarter, a marginal decline of 2% year-over-year. SharePoint, Exchange and Lync continued to show double-digit revenue growth. Operating income was slightly lower at $3.646 billion.

Server and Tools continued to grow, generating around $4.55 billion in quarterly revenue, up 8% year-over-year. Operating income increased to $1.748 billion.

Windows made $3.24 billion in quarterly revenue, down 33% year-over-year. This is expected to show a significant rise this quarter as Windows 8 launches, right before the holiday season. Operating income nearly halved to $1.646 billion.

Online Services was a money sink as usual. It reported revenue of $697 million, up 9% year-over-year, but had nearly $364 million in operating losses.

Entertainment & Devices reported revenue of $1.946 billion, with an operating profit of $19 million. With Windows Phone 8 launching this fall, Microsoft is banking on it to drive revenue growth in the coming quarters, but that seems unlikely.

Microsoft ended the quarter with around $66.6 billion in cash. cash equivalents and short-term investments.

via Microsoft – SEC

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