Windows 8 Investments Curb Microsoft Results - Twice

Windows 8 Investments Curb Microsoft Results

Redmond, Wash. — Microsoft reported lower revenue, net income and operating income for the quarter ended Sept. 30 due to the Windows Upgrade Offer, pre-sales of Windows 8 to OEMs prior to general availability, and the Office Offer.
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Redmond, Wash. — Microsoft reported lower revenue, net income and operating income for the quarter ended Sept. 30 due to the Windows Upgrade Offer, pre-sales of Windows 8 to OEMs prior to general availability, and the Office Offer.

Revenue was $16.01 billion, down from $17.4 billion in the prior year. Operating income was $5.31 billion, down from the prior year’s $7.2 billion while net income was $4.5 billion down from $5.7 billion year on year.

“The launch of Windows 8 is the beginning of a new era at Microsoft,” said Steve Ballmer, chief executive officer at Microsoft. “Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”

Peter Klein, chief financial officer, said, “While enterprise revenue continued to grow and we managed our expenses, the slowdown in PC demand ahead of the Windows 8 launch resulted in a decline in operating income. Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and Microsoft Business Division products as businesses commit to our technology roadmap.”

The Windows & Windows Live Division posted revenue of $3.24 billion, a 33 percent decrease from the prior year period. Adjusting for the impact of the Windows Upgrade Offer and pre-sales of Windows 8 to OEMs prior to general availability, Windows division non-GAAP revenue declined 9 percent for the first quarter. Windows 8 will become generally available October 26, 2012.

“We’re incredibly excited to be approaching general availability of Windows 8 and Windows RT,” said Kevin Turner, Microsoft chief operating officer. “We’ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooksand all-in-ones to the most powerful desktop computers.”

The Entertainment and Devices Division posted revenue of $1.95 billion, a decrease of 1 percent from the prior year period. Xbox continues to be the top-selling console in the U.S., where it now has 49 percent market share. Windows Phone 8 will launch this fall with an expanded array of products, prices, carriers, and markets. Skype continued its rapid growth and now has over 280 million users.

Redmond, Wash. — Microsoft reported lower revenue, net income and operating income for the quarter ended Sept. 30 due to the Windows Upgrade Offer, pre-sales of Windows 8 to OEMs prior to general availability, and the Office Offer.

Revenue was $16.01 billion, down from $17.4 billion in the prior year. Operating income was $5.31 billion, down from the prior year’s $7.2 billion while net income was $4.5 billion down from $5.7 billion year on year.

“The launch of Windows 8 is the beginning of a new era at Microsoft,” said Steve Ballmer, chief executive officer at Microsoft. “Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”

Peter Klein, chief financial officer, said, “While enterprise revenue continued to grow and we managed our expenses, the slowdown in PC demand ahead of the Windows 8 launch resulted in a decline in operating income. Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and Microsoft Business Division products as businesses commit to our technology roadmap.”

The Windows & Windows Live Division posted revenue of $3.24 billion, a 33 percent decrease from the prior year period. Adjusting for the impact of the Windows Upgrade Offer and pre-sales of Windows 8 to OEMs prior to general availability, Windows division non-GAAP revenue declined 9 percent for the first quarter. Windows 8 will become generally available October 26, 2012.

“We’re incredibly excited to be approaching general availability of Windows 8 and Windows RT,” said Kevin Turner, Microsoft chief operating officer. “We’ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled ultrabooksand all-in-ones to the most powerful desktop computers.”

The Entertainment and Devices Division posted revenue of $1.95 billion, a decrease of 1 percent from the prior year period. Xbox continues to be the top-selling console in the U.S., where it now has 49 percent market share. Windows Phone 8 will launch this fall with an expanded array of products, prices, carriers, and markets. Skype continued its rapid growth and now has over 280 million users.

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