Microsoft Beats Expectations, Posts Record Quarter

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News Posted: Fri, Jul 23 2010 11:37 AM
Life is good for Microsoft, the world's largest software maker who showed up Wall Street by posting better-than-expected revenue for the fourth quarter. We're talking about $16.04 billion for the quarter ended June 30, 2010, a 22 percent increase from the same quarter one year ago.

"This quarter's record revenue reflects the breadth of our offerings and our continued product momentum," said Peter Klein, chief financial officer. "The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion."


Microsoft has been firing on all fronts, from the recent launch of Office 2010 to continued strong sales of Windows 7, which has now sold over 175 million licenses. All this on top of Windows Server, a revamped Xbox that's purportedly cheaper to produce, and Bing, which Microsoft says has been gaining market share for 13 consecutive months.

"We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2020," said Kevin Turner, chief operating officer. "Our transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and we look forward to continuing our product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox connect."
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Chainzsaw replied on Fri, Jul 23 2010 2:02 PM

I'm not surprised. Xbox Live, Windows 7, and their latest server OS are very solid products. People may *** and moan about Microsoft, but at least they stick with the program.

I also like to use Bing too, when I like to try something else out other than Google. Bing's image finder is pretty awesome and same with their video search engine.

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Inspector replied on Fri, Jul 23 2010 4:15 PM

Microsoft always manages to pull something off one way or another. With all their new products out that are working fine! It would be a surprise if they didn't get this.

Love windows 7 and office 2010. Im alright with the xbox and bing. :D

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3vi1 replied on Sat, Jul 24 2010 12:15 AM

>> and Bing, which Microsoft says has been gaining market share for 13 consecutive months.

So in about 200 years, they'll break even on what it's been costing them to try to ruin Google.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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acarzt replied on Sat, Jul 24 2010 7:24 PM

wow, is that an accurate chart? lol cuz if so... that's absolutely horrible... what a bad investment lol

Also, I dislike Bing very much so.

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3vi1 replied on Sat, Jul 24 2010 10:34 PM

Yeah - as far as I know it's for real.

If you go look at MS's 2010 Q4 powerpoints, you'll see a nice cheerful $565M revenue for their Online division. But... go look at their earnings statement and you'll see that their actual *income* in that division was *negative* $696M for the quarter. Which means they're spending nearly $2.25 for every dollar they earn.

Talk about increased market share is not really encouraging when you consider that they having to spend an increasing amount of money to produce those uptick numbers.  I.e.  people are only checking out Bing because it was the last commercial they saw.  When MS quits spending themselves into a loss, their marketshare is going to go back down to insignificant..

The MS Entertainment and Services division is doing the same thing: $172M loss for this past quarter.

MS may be doing better this year overall, but I would take that more a reflection on the economy and the fact that they are still riding the Win7 release wave.

All said and told, the $16B in revenue actually only netted them under $6B in profit.  I wouldn't mind having a six billion dollar profit, but that's a couple of hundred million less than Apple netted last quarter. It will be interesting to see Apple's numbers for this quarter, with the new iPhone release and all.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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acarzt replied on Sun, Jul 25 2010 4:00 AM

I understand keeping the inversters happy and all by showing them pretty charts that make everything look good... but If you're investment is looking like a money pit and it's not going anywhere... but up front with it... and just kill the project before it sucks up any more resources.

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