Microsoft Reports Record Second-Quarter Results
Windows 7 demand drives record revenue and profit
REDMOND, Wash. - Jan. 28, 2010 - Microsoft Corp. today announced record revenue of $19.02 billion for the second quarter ended Dec. 31, 2009, a 14% increase from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $8.51 billion, $6.66 billion and $0.74 per share, which represented increases of 43%, 60% and 57%, respectively, when compared with the prior year period.
These financial results include the recognition of $1.71 billion of deferred revenue, an impact of $0.14 of diluted earnings per share, relating to the Windows 7 Upgrade Option Program and pre-sales of Windows 7 to OEMs and retailers before general availability. Adjusting for the deferred revenue recognition, second-quarter revenue totaled $17.31 billion, and diluted earnings per share totaled $0.60 per share.
"Exceptional demand for Windows 7 led to the positive top-line growth for the company," said Peter Klein, chief financial officer at Microsoft. "Our continuing commitment to managing costs allowed us to drive earnings performance ahead of the revenue growth."
Windows 7 and Windows Server 2008 R2 launched globally on October 22 as anticipated. Through the second quarter, Microsoft has sold over 60 million Windows 7 licenses making it the fastest selling operating system in history.
"This is a record quarter for Windows units," said Kevin Turner, chief operating officer at Microsoft. "We are thrilled by the consumer reception to Windows 7 and by business enthusiasm to adopt Windows 7."
Management will discuss second-quarter results and the company's business outlook on a conference call and webcast at 2:30 p.m. PST (5:30 p.m. EST) today.
In addition, Microsoft offers operating expense guidance of $26.2 billion to $26.5 billion, for the full year ending June 30, 2010.
Peter Klein, chief financial officer, Frank Brod, chief accounting officer, and Bill Koefoed, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PST (5:30 p.m. EST) today to discuss details of the company's performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/msft. The webcast will be available for replay through the close of business on Jan. 28, 2011.
Adjusted Financial Results - Reconciliation of Non-GAAP Measures
This information has been provided to aid readers of the financial statements in further understanding the company's financial performance. The impact of certain items and events on the financial results may not be indicative of trends affecting the company's business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. The non-GAAP financial measures provided above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
Latest News Posts
- Apple copies Samsung again, with exploding iPhone 7 Plus
- Microsoft admits PCs have 'eclipsed' consoles
- Civilization VI and Deluxe pre-order deals now available
- Spotify in 'advanced talks' to buy SoundCloud
- Hardware Deals: i5-6600K nears $200, GTX 1070 under $350
- ASUS X99-Deluxe II Motherboard Review
- U.2 Kit on Taichi
- Z170X-Gaming 5 - Thunderbolt controller + Intel RST drivers issue.
- Palit GeForce GTX 1070 GameRock Premium Edition Review
- GA-EX58-UD3R Vt-d support
- Antec and Razer team up to co-brand a new Mini-ITX gaming chassis
- Samsung Electronics accelerates the NVMe era for consumers with its highest performing 960 PRO and EVO Solid State Drives
- Lighting is in the Aer: NZXT launches Aer RGB, premium LED PWM fans
- Syber Gaming delivers VR and 4K-ready 'C Series' small form factor gaming PC
- HyperX Gears of War gaming headset shipping now