Redmond, Wash. – Demand for Windows Vista and the 2007 Microsoft Office release drove Microsoft’s fiscal third quarter revenue and profits at double digit rates, according to the company.
Microsoft reported revenue of $14.4 billion for the quarter ended March 31, a 32 percent increase over the same period of the prior year. This revenue drove record profits with operating income of $6.59 billion and net income of $4.93 billion.
These results reflect $1.67 billion of revenue and operating income and $1.14 billion of net income that were previously deferred primarily related to the technology guarantee programs for Windows Vista and the 2007 Microsoft Office release.
“I am extremely pleased that we delivered a quarter of strong double-digit growth for revenue [and] operating income,” said Chris Liddell, chief financial officer at Microsoft. “And I am looking forward to a very good finish to this fiscal year with strength continuing into fiscal 2008.”
Net cash flow from operations was $7.29 billion and Microsoft returned $7.72 billion in cash to shareholders through share buybacks and dividends this quarter.
Microsoft management offers the following guidance for the quarter ending June 30: revenue is expected to be in the range of $13.1 billion to $13.4 billion; and operating income is expected to be in the range of $5.0 billion to $5.2 billion.