News

Microsoft Keeps Raking in Profits

Microsoft Corp. released its third quarter earnings at the close of business Thursday, showing profits of $2.72 billion on revenues of $7.25 billion for the quarter that ended March 31. Strong Windows XP sales were a key driver, according to Microsoft chief financial officer John Connors.

"We delivered another quarter of solid revenue growth and operating results that exceeded our expectations. Desktop platform sales have been excellent on the strength of Windows XP –- both in the enterprise and in the home," Connors said in a statement.

On the strength of Windows XP, desktop platforms revenue grew 11 percent, with pricier business versions of Windows accounting for 47 percent of all operating systems sold this quarter, Microsoft said. That's up from business operating systems accounting for 35 percent of OS sales in the year-ago quarter.

"This quarter Windows XP shipped on nearly 60 percent of all new PCs, which represents a faster penetration than any of our previous operating systems," Jim Allchin, group vice president of the platforms division at Microsoft, said in a statement.

Microsoft contributed to its earnings by driving down costs and improving efficiency throughout the organization during the quarter, Connors said.

Microsoft's expectations for the next quarter, which ends June 30, are for revenues around $7 billion and operating income around $3 billion. The company's fiscal year ends on that date as well, and Microsoft currently expects to show revenues of about $32 billion, with operating income of around $13.5 billion.

"While we look forward to slightly improved PC growth rates for the next quarter, our expectations for enterprise IT spending levels continue to be quite modest," Connors said.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • How To Use .CSV Files with PowerShell, Part 1

    When it comes to bulk administration, few things are handier than .CSV files. In this two-part series, Brien demos his top techniques for working with .CSV files in PowerShell. First up: How to create a .CSV file.

  • SameSite Cookie Changes Rolled Back Until Summer

    The Chromium Project announced on Friday that it's delaying enforcement of SameSite cookie changes, and is temporarily rolling back those changes, because of the COVID-19 turmoil.

  • Basic Authentication Extended to 2H 2021 for Exchange Online Users

    Microsoft is now planning to disable Basic Authentication use with its Exchange Online service sometime in the "second half of 2021," according to a Friday announcement.

  • Microsoft Offers Endpoint Configuration Manager Advice for Keeping Remote Clients Patched

    Microsoft this week offered advice for organizations using Microsoft Endpoint Configuration Manager with remote Windows systems that need to get patched, and it also announced Update 2002.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.