Microsoft Reports Record 3rd Quarter Earnings

April 29th, 2011 at 12:13 pm
 


It seems that many tech companies have recently been reporting record quarter earnings. Software giant Microsoft seem to follow suit as it recently reported record earnings for its fiscal 3rd quarter. For starters, Microsoft reported $16.43 billion in total revenue for the 3rd quarter. It stands for a 13 percent increase compared to the total revenue made for the same quarter last year.

But total revenues alone do not provide a clear indication on whether a company is doing good recently or not. Net income may provide a better picture. In this case, Microsoft reported a net income of $5.23 billion for the said quarter. This comes as a whopping 31 percent increase from the net income Microsoft made for the same quarter last year. The software giant also highlighted the driving factors for the better 3rd quarter revenues.

A big part of Microsoft’s business still hinges on the sales of its proprietary software products. And this year, its new Windows 7 OS led the way with an incredible 350 million software licenses sold so far. The strong sales fueled the good 3rd quarter revenue increase. But that’s not all.

Microsoft also reported that its Entertainment and Devices Division has also greatly contributed to the record 3rd quarter earnings. The company cited strong sales of their Xbox 360 gaming consoles and the Xbox Live. But a greater chunk of that may also be credited to the record sales of its Kinect sensors. Microsoft sold 2.7 million Xbox 360 consoles for the quarter, which is also a new 3rd quarter record for the company. Kinect sold at an incredible 2.4 million for the same quarter. Overall, Microsoft saw an impressive 60 percent revenue growth for its Entertainment and Devices Division.

But as for its Windows Phone project, Microsoft is not yet that keen to divulge clear figures. Not a lot of specifics have been provided as of yet, short of the fact that the company reported that it is showing good product reviews. Well, it still have the potential to become a big revenue earner in the future, especially with Microsoft’s new partnership with Nokia.

 

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