Microsoft Reports $17.4 Billion Quarterly Revenue; Office and Server Sales Grow Most

Microsoft announced its earnings for the quarter ended March 31, 2012, with revenue of $17.41 billion and operating income of $6.37 billion, a 6% and 12% year-over-year increase respectively. Its net income was $5.11 billion.

The Server & Tools business posted the highest revenue growth, with sales growing to $4.57 billion, up 14% over last year. Microsoft’s primary money maker – the Business division which is comprised of Office and Dynamics – saw revenue grow 9% to $5.81 billion.

On the other hand, its Windows division saw revenue growth slow down to just 4%, with revenue of $4.62 billion. It is expected to see a massive jump once Microsoft launches Windows 8 in late 2012.

The Online Services division, comprised of Bing, MSN and Microsoft’s other online properties, posted a loss yet again, losing $300 million on revenue of $707 million. At this rate, it should become profitable in the coming years.

Entertainment and Devices – Xbox, Kinect, Windows Phone and Zune – posted a 16% decline in sales, which dropped to just $1.62 billion, as the holiday sales period wore off, and the Xbox 360 enters its 7th year. Microsoft may launch the next Xbox in 2013 or 2014, which should lead to a sales boost.

“We’re driving toward exciting launches across the entire company, while delivering strong financial results,” said Steve Ballmer, chief executive officer at Microsoft. “With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead.”

With Windows 8, Office 15 and the next Xbox launching in 2012 and 2013, the next couple of years are going be be very important for Microsoft.

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