Microsoft Reports Record Third-Quarter Revenue
Windows 7 momentum continues
REDMOND, Wash. - Apr. 22, 2010 - Microsoft Corp. today announced record third-quarter revenue of $14.50 billion for the quarter ended Mar. 31, 2010, a 6% increase from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.17 billion, $4.01 billion and $0.45 per share, which represented increases of 17%, 35% and 36%, respectively, when compared with the prior year period.
The results include the deferral of $305 million of revenue relating to the Microsoft Office 2010 Technology Guarantee program. Adjusting for the revenue deferral, third-quarter revenue totaled $14.81 billion, an increase of 8% over the prior year period.
"Windows 7 continues to be a growth engine, but we also saw strong growth in other areas like Bing search, Xbox LIVE and our emerging cloud services," said Peter Klein, chief financial officer at Microsoft. "Our record third-quarter revenue along with continued rigor on cost management resulted in exceptional EPS growth."
Windows revenue was up 28%, compared with the same quarter a year earlier, driven by strong demand for Windows 7. More than 10% of all PCs worldwide are running Windows 7 today, making Windows 7 by far the fastest-selling operating system in history.
"Business customers are beginning to refresh their desktops and the momentum of Windows 7 continues to be strong," said Kevin Turner, chief operating officer. "We are also seeing tremendous interest in our market-leading cloud services for business."
Microsoft offers operating expense guidance of $26.1 billion to $26.3 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. PDT (5:30 p.m. EDT) 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 Apr. 22, 2011.
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
challenges to Microsoft's business model;
intense competition in all of Microsoft's markets;
Microsoft's continued ability to protect its intellectual property rights;
claims that Microsoft has infringed the intellectual property rights of others;
the possibility of unauthorized disclosure of significant portions of Microsoft's source code;
actual or perceived security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;
government litigation and regulation affecting how Microsoft designs and markets its products;
Microsoft's ability to attract and retain talented employees;
delays in product development and related product release schedules;
significant business investments that may not gain customer acceptance and produce offsetting increases in revenue;
unfavorable changes in general economic conditions, disruption of our partner networks or sales channels, or the availability of credit that affect demand for Microsoft's products and services or the value of our investment portfolio;
adverse results in legal disputes;
unanticipated tax liabilities;
quality or supply problems in Microsoft's consumer hardware or other vertically integrated hardware and software products;
impairment of goodwill or amortizable intangible assets causing a charge to earnings;
exposure to increased economic and regulatory uncertainties from operating a global business;
geopolitical conditions, natural disaster, cyberattack or other catastrophic events disrupting Microsoft's business;
acquisitions and joint ventures that adversely affect the business;
improper disclosure of personal data could result in liability and harm to Microsoft's reputation; and
outages and disruptions of services provided to customers directly or through third parties if Microsoft fails to maintain an adequate operations infrastructure.
For further information regarding risks and uncertainties associated with Microsoft's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Microsoft's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft's Investor Relations department at (800) 285-7772 or at Microsoft's Investor Relations Web site at http://www.microsoft.com/msft.
All information in this release is as of Apr. 22, 2010. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
Latest News Posts
- AMD Radeon RX Vega loses to GTX 1080 at 1080p
- Halo 6's 'compelling' story will focus on Master Chief
- AMD Radeon RX Vega bundled with Quake Champions
- Nintendo won't be at E3 2017
- AI to replace over 50% of ALL jobs in the next 10 years
- Cutting LED-Strips - LED50RGB-2
- ASUS USB-AC53 Nano AC1200 Wireless Adapter Review
- GIGABYTE Xtreme Gaming XTC700 CPU Cooler Review
- ASRock 990fx Extreme9 and NVMe support
- HDD to SSD
- Get ready for Intel Optane memory with ASRock 200 series motherboards!
- Acer unleashes the Predator Triton 700, a thin yet powerful gaming notebook without compromise
- Acer's new Predator monitors with quantum dot technology deliver spectacular gameplay experiences
- Acer expands its gaming notebook line with the powerful Predator Helios 300
- Western Digital ships fourth-generation Helium Hard Drive platform with Ultrastar He12 12TB advanced storage hard drives