Microsoft Reports Record Revenue of $21.5 Billion in Q4 2012

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Microsoft Corp. today announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income was $7.77 billion , net profit $6.38 billion , and earnings per share $0.76.

The profit us down from $6.6 billion a year ago, but the Windows Division reported revenue of $5.88 billion, a 24 percent increase from a year ago due to pre-orders of Windows 8.

Microsoft re-affirmed that they sold over 60 million Windows 8 licenses to date.

“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, chief executive officer at Microsoft. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”

"We saw strong growth in our enterprise business driven by multi-year commitments to the Microsoft platform, which positions us well for long-term growth,” said Peter Klein, chief financial officer at Microsoft. “Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division.”

The Server & Tools business reported $5.19 billion of revenue, a 9% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.

“We see strong momentum in our enterprise business. With the launch of SQL Server 2012 and Windows Server 2012, we continue to see healthy growth in our data platform and infrastructure businesses and win share from our competitors,” said Kevin Turner, chief operating officer at Microsoft. “With the coming launch of the new Office, we will provide a cloud-enabled suite of products that will deliver unparalleled productivity and flexibility.”

The Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. Adjusting for the impact of the Office Upgrade Offer and Pre-sales, Microsoft Business Division non-GAAP revenue increased 3% for the second quarter. Revenue from Microsoft’s productivity server offerings – collectively including Lync, SharePoint, and Exchange – continued double-digit percentage growth.

The Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. Adjusting for the Video Game Deferral, the division’s non-GAAP revenue decreased 2% for the second quarter. Xbox continues to be the top-selling console in the United States. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.

Read more at Microsoft.com here.

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  • http://twitter.com/luismatoso Luis Matoso

    If this is the post PC times, so long live Microsoft

  • GG002

    I love how people keep talking smack about how bad the Windows 8 sales were. The numbers speak otherwise.

    • SocalBrian

      The bump due to Windows 8 was about 1/3 that of the bump that the Windows 7 launch provided – so no, the numbers do not speak otherwise.

      • GG002

        I’m not comparing W8 to W7, so stop patronising me and putting words into my mouth. I’m telling you to look at the numbers Microsoft provided from the Windows division. I won’t argue this further with someone who can’t read.

        • SocalBrian

          It’s a product rollout quarter so it’s entirely reasonable to compare these rollout resutls to the last big rollout quarter for this product. It’s about more than just reading, it’s about understanding some fundamentals about how publicly traded companies are measured.

      • José Villaró

        Yes, but that was because the shift from vista to 7 was way more compelling than moving from 7 to 8. Updating 7 to 8 is not that necessary for people who are happy with it, so I would think the sales figure are still impresive

        • SocalBrian

          I would agree that it’s not a compelling upgrade – but I would argue that that is an important thing to take note of (I guarantee that Dell, HP, Acer, Lenovo, etc. all WISH it was more of a compelling upgrade).

          • krayziehustler

            They have no one to blame but themselves. They had historically low stocks of their new PCs. Not to mention that they had a long time to prepare and most came to market with crap. They have to look in the mirror first.

  • arrow2010

    Microsoft is a devices & services company now. The Numbers speak for themselves. Windows 8/RT sales will only get better.

    • SategB

      What numbers, they are too embarrassed to give us numbers for Surface & WP8 while “Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11%” and traditional PC’s are down 6% so the the majority 60 million Windows 8 are sitting on store shelves not being bought by consumers.

      We need to demand better.

  • guesttt999

    All those moron analysts should be tired and ashamed of their diabolical predictions for Microsoft already! Quarter after quarter Microsoft reports record earnings and Windows 8 with Windows Phone 8 and Office 2013 will help these numbers climb!

    • WebUser

      Morons, indeed, as I call them. MSFT should be in high $60s at the time if they are valued purely by performance. The reason behind those analysts’ thesis has been: Linux will kill Microsoft, netbook will kill Microsoft, virtualization will kill Microsoft, internet will Microsoft, cloud will kill Microsoft. They didn’t. Now they say mobile will kill Microsoft. Those morons will learn. By the end of the year, you will see hundreds of millions of computers running Windows 8. A large portion of them will be Windows 8 tablets. I just can’t find any reason to buy a ishit or androidshit.

      • Martyn Metalous

        Would agree, mobile won’t kill the PC, an example of this: Its easier for me to go upstairs and turn on my computer than it is to type an email out on a tablet. The day productivity shifts to mobile, is the day the PC will die, but MS is bringing the PC to mobile, this will kill the mobile but its a long game.

  • LOL

    Windows revenues up 24% in the same quarter when Mac sales collapsed 21%. So much for the “Apple-fuelled post-Windows era.” ROFL

    • SategB

      Lets be more thoughtful in out post and avoid the trap of sounding like an idiot. As late as 2005 Windows had 96% of the personal computer device OS market share. As of today it is somewhere around 25%.

      The “post-Windows-era” is here and the more we help Management understand this is a fact, the better it will be for MSFT. And by the lack of success we are having with WP8, Surface and WP8 we need to be diligent at making sure Ballmer and his boys get it otherwise the company we love will be a shell of itself in 5 years. This means rather then simply being moronic cheerleaders we need to start demanding the best from them.

    • SategB

      Lets be more thoughtful in out post and avoid the trap of sounding like an idiot. As late as 2005 Windows had 96% of the personal computer device OS market share. As of today it is somewhere around 25%.

      The “post-Windows-era” is here and the more we help Management understand this is a fact, the better it will be for MSFT. And by the lack of success we are having with WP8, Surface and WP8 we need to be diligent at making sure Ballmer and his boys get it otherwise the company we love will be a shell of itself in 5 years. This means rather then simply being moronic cheerleaders we need to start demanding the best from them.

  • http://twitter.com/supwitya jeff

    is this still allowed under the current regime?