By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Redmond, Wash. – Microsoft reported higher revenue and net income for its fiscal fourth quarter and fiscal year ended June 30.
Revenue for the quarter was $19.9 billion, up from the prior year’s $18.1 billion. Fiscal year revenue was $77.8 billion compared with the prior year’s $73.7 billion.
Net income for the quarter was $4.98 billion, reversing the prior year’s loss of $492 million. Net income for the year was $21.8 billion, up from the prior year’s $16.9 billion
“While our fourth-quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter. We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype and Xbox Live,” said Amy Hood, chief financial officer at Microsoft. “While we have work ahead of us, we are making the focused investments needed to deliver on long-term growth opportunities like cloud services.”
“We are working hard to deliver compelling new devices and high value experiences from Microsoft and our partners in the coming months, including new Windows 8.1 tablets and PCs,” said Steve Ballmer, Microsoft CEO.
He added, “Our new products and the strategic realignment we announced last week position us well for long-term success, as we focus our energy and resources on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value the most.”
Revenue for the entertainment and devices division grew 8 percent for the fourth quarter and 6 percent for the full year. During the quarter, transactional revenue within Xbox Live grew nearly 20 percent as the company unveiled its next-generation gaming and entertainment console, Xbox One.
Windows division revenue grew 6 percent for the fourth quarter and 5 percent for the full year. Excluding the impact of the prior year Windows Upgrade Offer revenue deferral, Windows division non-GAAP revenue decreased 6 percent for the fourth quarter and 1 percent for the full year.
In June, Microsoft released the public preview of Windows 8.1 which will be made available to OEMs in August.
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