Software Imperium Microsoft has been doing rather well for itself over the last few months.
Sales were up 25 percent from a year earlier, although the prior year results included the effects of a deferral of revenue ahead of the release of Windows 7. Without that, sales were up 13 percent and net income rose 16 percent.
CFO Peter Klein said in a statement that it was an exceptional quarter combining solid enterprise growth and continue strong consumer demand for Office 2010, Windows 7 and Xbox 360,
Chief Operating Officer Kevin Turner added that the company was seeing strong sales of long-term enterprise agreements with business customers.
Shareholders however were not that enthusiastic. Even on the back of good news the Imperium’s shares only rose by one percent. If Apple had made the same announcement, share prices would have eclipsed the sun.
Microsoft earned $4.3 billion from its Windows and Windows Live division, on revenue of $4.79 billion, as PC sales grew by an estimated 9 percent to 11 percent from a year ago.
Thanks to the release of Office 2010, the Microsoft Business division posted $3.39 billion in earnings on sales of $5.13 billion. Overall revenue was up 14 percent, although consumer sales grew at more twice the rate of business spending.
The Server and Tools unit posted a $1.63 billion operating profit on revenue of $3.96 billion. The Imperium saw double digit growth in both multi-year agreement and one-time sales as well as a pick-up in the mix of premium versions of Windows Server. Subscriptions of its still new Windows Azure grew 40 percent quarter-over-quarter.
However the Imperium failed to make a profit on its online advertising. Although doing better than last time, lost $560 million in the quarter, on revenue of $527 million.
The Entertainment and Devices unit, which is all things Xboxish, posted a $382 million operating profit on sales of $1.79 billion. Xbox console sales grew 38 percent as the company introduced a new, slimmer version of the game hardware.
Microsoft said that while it has seen a shift from low-end PCs to higher-end models, it had not seen a significant impact from tablets such as Apple’s iPads.