Microsoft just released positive earnings for the fifth quarter in a row, with second quarter revenues of $19.95 billion, a 5% increase from last year. Diluted earnings per share were $0.77 per share. The company beat the street as analysts expected revenue to come in at $19.14 billion and diluted earnings per share of $0.68. Operating income and net income for the quarter were $8.17 billion and $6.63 billion, a decrease of 4% and 0.4%, respectively, over the same time last year.
Some highlights from the quarter:
- Revenues for the Windows division were down 29.7 percent to $5 billion. Operating profits were also down by about $2 billion.
- More than 20 percent of PCs worldwide (300 million) are now running Windows 7.
- Microsoft’s business division (powered by Office) grew 24 percent to $6 billion in revenues, and operating profits were a very healthy $3.97 billion.
- The online division grew 19 percent to $691 million in revenues, but losses widened to $543 million.
- Online advertising revenues were up 23 percent.
- Xbox Kinnect sold 8 million units in 60 days, driving the entertainment division’s revenues up 55 percent to $3.7 billion.
Below is a breakdown of Microsoft’s revenues and operating profits by business (You can read the entire report here):
MICROSOFT CORPORATION
Segment Revenue and Operating Income (Loss)
(In millions) (Unaudited)
| Three Months Ended December 31, |
Six Months Ended December 31, |
|||||
| 2010 | 2009 | 2010 | 2009 | |||
| Revenue | ||||||
| Windows & Windows Live Division | $5,054 | $7,193 | $9,839 | $10,063 | ||
| Server and Tools | 4,390 | 3,978 | 8,349 | 7,523 | ||
| Online Services Division | 691 | 579 | 1,218 | 1,067 | ||
| Microsoft Business Division | 6,032 | 4,864 | 11,157 | 9,360 | ||
| Entertainment and Devices Division | 3,698 | 2,381 | 5,493 | 3,815 | ||
| Unallocated and other | 88 | 27 | 92 | 114 | ||
| Consolidated | $19,953 | $19,022 | $36,148 | $31,942 | ||
| Operating Income (Loss) | ||||||
| Windows & Windows Live Division | $3,251 | $5,417 | $6,573 | $6,894 | ||
| Server and Tools | 1,776 | 1,464 | 3,415 | 2,709 | ||
| Online Services Division | (543) | (463) | (1,103) | (940) | ||
| Microsoft Business Division | 3,965 | 2,947 | 7,340 | 5,744 | ||
| Entertainment and Devices Division | 679 | 365 | 1,067 | 640 | ||
| Corporate-level activity | (963) | (1,217) | (2,011) | (2,052) | ||
| Consolidated | $8,165 | $8,513 | $15,281 | $12,995 | ||