Windows 7 Drives Microsoft In Fiscal Q2

By Steve Smith -- TWICE, 1/28/2010

Redmond, Wash. - Microsoft reported major gains in revenue and net income in its fiscal second quarter, due in large part to sales of its Windows 7 operating system.

In its fiscal second quarter, ended Dec. 31, Microsoft's revenue was $19.02 billion, up 14 percent for the same time last year.  Net income was $6.66 billion, a 60 percent gain over the prior-year period.

These financial results include the recognition of $1.71 billion of deferred revenue relating to the Windows 7 Upgrade Option Program and presales of Windows 7 to OEMs and retailers before general availability.

"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 Oct. 22, 2009, and through the second quarter, Microsoft reported it has sold more than 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, COO at Microsoft. "We are thrilled by the consumer reception to Windows 7 and by business enthusiasm to adopt Windows 7."