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
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