By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Redmond, Wash. — Microsoft reported higher revenue, net income and operating income in its fiscal third quarter, ended March 31.
Revenue was up $3 billion to $20.5 billion. Net income was up about $1 billion to $6.05 billion, and operating income was up $1.3 billion to $7.6 billion.
The Windows division posted revenue of $5.7 billion, a 23 percent increase from the prior year period. Adjusting for the recognition of revenue related to the Windows Upgrade Offer, Windows division non-GAAP revenue was flat. Operating income for the unit was up $500 million, to $3.45 billion.
The online services division reported revenue of $832 million, an 18 percent increase from the prior-year period. Online advertising revenue grew 22 percent, driven by an increase in revenue per search. The unit cut its operating loss by $218 million, reaching $262 million.
The entertainment and devices division posted revenue of $2.53 billion, an increase of 56 percent from the prior-year period. Adjusting for the recognition of revenue related to a video game deferral, the division’s non-GAAP revenue increased 33 percent for the third quarter. Xbox Live now has more than 46 million members worldwide, an 18 percent increase from the prior-year period, Microsoft said. Operating income was $342 million, compared with a loss of $228 million the prior year.
“Our diverse business continues to deliver solid financial results, even as we navigate the evolving device market,” said Peter Klein, chief financial officer at Microsoft.
The company also announced that Klein will leave Microsoft the end of the current fiscal year, after nearly four years in role and 11 years at the company. Microsoft will be naming a new CFO from its finance leadership team in the next several weeks.
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