Microsoft Had $17.37 Billion Revenue in Q4 2011; $69.94 Billion in FY2011

Microsoft has announced its Q4 results for the year ended June 30, 2011. Judging by the numbers, it looks like Microsoft has had a great quarter. It reported Q4 revenues of $17.37 billion, up 8% year on year. Its operating income grew to $6.17 billion, up 4% from Q4 2010, while its net income grew to $5.87 billion, an increase of 30%.

For the entire fiscal year 2011, Microsoft reported revenues of $69.94 billion, a 12% increase over FY 2010. Its operating and net income grew to $27.16 billion, and $23.15 billion, up 13% and 23% respectively.

“Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion,said Peter Klein, Microsoft CFO. Our platform and cloud investments position us for long-term growth.”

Microsoft’s Business and Windows divisions are doing very well. Microsoft has sold over 100 million Office 2010 licenses and more than 400 million Windows 7 licenses. It successfully launched Office 365 and has a very good chance of dominating the cloud based productivity software market. Even its Server and Tools division is growing reasonably well, driving revenue growth. Though Bing’s U.S. market share is up to 14.4% now, the Online Services division is still bleeding money.

The Entertainment and Devices division has seen its revenue jump 30% in Q4 and 45% for the full year, thanks to the spectacular success of the Xbox 360, Kinect, and Xbox Live. Coming to Windows Phone 7, it doesn’t represent a significant portion of the revenues, but with Android mired in lawsuits, it is well positioned to become a leading platform in the coming years.

Check out: Microsoft’s 2011 Earnings Release

Nokia’s Q2 2011 Results Announced; I AM DISAPPOINT!

Nokia Q2 ResultsNokia used to be the number one smartphone maker in the world. It created the smartphone market in the late 90s and dominated it for years. But then, in 2007, Apple launched the iPhone. It redefined the entire category, and soon became the number one smartphone company in terms of sales, in the US. Trying to emulate Apple’s success in smartphones, Google launched the Android OS, and it soon dethroned Nokia’s Symbian as the leading smartphone platform worldwide.

Stephen Elop, the man who people call Microsoft’s trojan horse in Nokia, has been at the helm of Nokia for about a year now. He has been making some changes to Nokia’s strategy to make it a smartphone giant again, but they don’t seem to be working. Nokia has pledged allegiance to Microsoft’s Windows Phone 7 platform, sidelining Symbian and MeeGo in the process.

Today, Nokia released its Q2 2011 earnings report. Compared to Apple’s outstanding results, they are extremely disappointing.

Nokia has posted a €487 million operating loss, down €782 million from a profit of €295 million in Q2 2010. Its sales are down to €9.275 billion, from €10 billion in Q2 2010. While it had nearly €1 billion in cash last year, it now has €176 million in debt. Even its EPS is down to €0.06; a drop of nearly 45%. The sales of all its product divisions have been dropping; smartphone sales are down 32% while feature phone sales are down 20%. Apple sold more smartphones than Nokia, at a much higher profit margin. In other words, it is completely fucked.

Nokia hasn’t launched a single successful product this quarter, as it concentrates its efforts on the Windows Phone 7 devices it plans to launch soon. If it screws up its Windows Phone 7 launch, which I think is very probable, it will likely end up either dead, or will be acquired by Google, Microsoft or Apple for its enormous patent portfolio.

Interestingly, Nokia seems to have made nearly €430 million as patent licensing fees, most of which is probably from Apple, as part of a settlement in a patent lawsuit that Nokia won.

Nokia’s Q2 2011 Earnings Release