Microsoft Posts Double-Digit Income Gains

By TWICE Staff -- TWICE, 7/21/2011

Redmond, Wash. - Microsoft reported a double-digit increase in net income and an 8 percent increase in revenue for its fiscal fourth quarter, ended June 30.

Record sales for the fiscal fourth quarter hit $17.3 billion, up from the prior year's $16 billion.

Net income was $5.87 billion, up 30 percent from the prior year's $4.5 billion. Operating income, which reached $6.17 billion, was up 4 percent.

For the fiscal year Microsoft reported record revenue of $69.94 billion, a 12 percent increase from the prior year. Net income rose 23 percent year on year to $23.1 billion while operating income rose 12 percent to $27.16 billion.

"Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion," said Peter Klein, chief financial officer at Microsoft. "Our platform and Cloud investments position us for long-term growth."

In its entertainment and devices division, revenue grew 30 percent for the fourth quarter and 45 percent for the full year, due to the ongoing momentum of the Kinect console and Xbox Live, Microsoft said.

Xbox 360 has been the top-selling game console in the U.S. over the past 12 months. At E3 in June, Microsoft highlighted its upcoming game lineup, Xbox Live content partnerships, and enhanced content discovery using Bing and Kinect, the company said.

"A strong year of double-digit increases in revenue and earnings is a real credit to all of our Microsoft employees and partners around the world. We continue to see strong business demand across all of our products, from small businesses all the way up to the largest global enterprises," said Kevin Turner, COO. "Our move to Cloud services continues with the release and momentum of Office 365 and growth in Windows Azure. We're providing our customers seamless and powerful ways to move to the Cloud, and we are well positioned for the coming year."