Microsoft Posts Record Earnings Quarter, Surface Revenue Grows To $400M

Microsoft reported its fiscal Q1 2014 revenue, and things are actually looking pretty solid for Redmond. For the three-month period ending on September 30th, GAAP Revenue was up 16% to $18.53 billion from about $16 billion, and operating income was up from $5.31 billion to $6.33 billion. The numbers include $113 million of deferred revenue from Windows 8.1 pre-sales.

Revenue generated by Surface sales rose to $400 million, which bodes well for Microsoft’s homegrown tablet platform as the company debuts its new Surface 2 and Surface Pro 2 devices. It’s also interesting to note that although Windows Pro revenue continues to grow, Microsoft’s Windows OEM revenue dropped 7%. Overall, though, Microsoft’s Devices And Consumer revenue grew to $7.46 billion, an increase of 4%.

Microsoft Surface Pro 2

Outgoing CEO Steve Ballmer was optimistic in a statement where he said, ““Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices.”

Microsoft fiscal Q1 2014 financials

Other financials include the fact that the company’s commercial revenue was up 10% to $11.2 billion, with especially huge (103%) gains on commercial cloud revenue. Search advertising revenue shot up 47% as well, which the company says was driven by a jump in revenue per search and volume.
Via:  Microsoft
ricofrost one year ago

Its good to see, I'm so glade the didn't give up on it. It really is a good product. I just got the Pro 2 and it is rather nice. I had tablet and laptop that I would carry to and from work. I now just carry the Pro 2. As soon as the docking station comes out I will be replacing my desktop with the Pro 2.

I will move from having 3 devices to 1 for me. To be honest I am looking at rolling it out to the rest of the company. Most users have 2 monitors and most ultrabooks don't have a docking station that isn't after market so this is looking very tempting for me.

The surface 2 seems to be a marked performance improvement and coming with full office is very nice indeed.

Sevags one year ago

Rico, I agree with everything you said, but may I ask why having after market docking stations is a bad thing? Do you just want the logo on the ultrabook and the dock to match? After-market docks have the advantage of often costing less, being universal so they can be used by different machines also making it more future proof, and offer a variety of inputs/outputs to match most peoples needs.

basroil one year ago

"After-market docks have the advantage of often costing less, being universal so they can be used by different machines also making it more future proof, and offer a variety of inputs/outputs to match most peoples needs."

They also have the disadvantage of not existing at all. Most so called docks nowadays are simply hubs with power for your device, nothing like the docks back when most laptops still had expansion ports on the bottom. The dock with Surface is a true dock, adding features that do not exist on the original device, while not using any of the original connectors.

sevags one year ago

Basroil; again what's wrong with them exactly? I own a toshiba dynadock and an HP port replicator. Both are much smaller than the docking stations from a decade ago, offer the same functionality, are universal to any laptop (dynadock only supports windows but the HP works on a Mac as well), and both only use 1 USB port yet both offer extra USB ports so it's still not an inconvenience. 

ricofrost one year ago

It seems that most docks for ultrabooks are just a usb plugging in to a hub kind of thing. I just feel better having the device "click in" I know it may sound crazy but that just shows professionalism.

I really do like the Surface, it is a usable device for my work. I am planning to do a PC refresh for our company shortly and the Surface Pro is defiantly on the table as a option. Even if it is a few hundred more per PC the portability and performance looks to be worth it.

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