Microsoft Reports Q3 2012 Earnings

April 20th, 2012 at 12:49 pm

Microsoft has recently released its financial earnings report for the third quarter of fiscal year 2012. The reports show a promising year for the software giant as it begins to tackle other areas of its business that’s no longer connected to its main revenue earner in PC software. But for the most part, their strengths remain to be their various software products.

For the third quarter of this fiscal year, Microsoft reported a total of $17.41 billion in revenue, which is around six percent higher than revenue posted on the same quarter of last fiscal year. The software giant also reported a $6.37 billion operating income for Q3 2012. This number is 12 percent higher than its operating income reported for the same quarter of last year.

Breaking down the revenue in terms of its various products, its Business Division, which includes its Office Suite along with other software products, took in $5.81 billion in revenue. Its Windows OS and Windows Live products were able to take in $4.62 billion while its Server and Tools Division raked in $4.57 billion Q3 revenue. Its Online Services division was able to take in $707 million. All in all, the divisions all enjoyed increases ranging from 4 to 14 percent in terms of revenue comparison.

While the mentioned divisions were able to show improved revenue numbers, there were also others that haven’t fared out so well. Microsoft’s Entertainment and Devices division suffered through a 16 percent decrease in revenue for this third quarter, able to get only $1.62 billion. The reason for the said decline was attributed to a soft gaming console market during the past few months with relatively few new game titles along with a relatively lack of new game consoles introduced.

But what might be interesting for some is that Microsoft has relatively failed to mention anything about its new Windows Phone and how it has been faring lately. While it is saying that it is quite pleased with its current partnership with Nokia and the recent releases of Windows Phone handsets such as the Lumia 900, it might be too early to tell whether Microsoft can talk freely about its success. There are several challenges ahead that this division may be currently facing. But the software giant will be trying to look forward to the opportunities that it may be facing with its entry into the mobile phone market with its own mobile OS.


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