News

Microsoft's Q2 Financials Up on Windows Earnings

Microsoft reported largely positive earnings for its second fiscal quarter today.

Revenue for the quarter, which ended on Dec. 31, 2012, was $21.5 billion, up from $20.9 billion in the previous year's Q2 period. The company beat earnings-per-share expectations for the quarter by one cent at 0.76 earnings per share. Profit or net income was $6.4 billion, which was down compared with the $6.6 billion figure reported in last year's Q2 period. After-hours trading showed a 2.06% dip in Microsoft's stock price today, per Yahoo Finance reporting.

The Q2 earnings were affected by various deferrals associated with Microsoft's promotional sales campaigns, including the Windows and Office upgrade offers. However, Microsoft's financial results for this quarter also included earnings from early Windows 8 sales.

Unlike Microsoft's Q1 results, the Windows Division was the top money maker in this period. It brought in $5.9 billion, up 24% compared with last year's Q2 period. Server and Tools placed second, bringing in $5.2 billion revenue, up 9% vs. last year's Q2 period. The Online Services Division was up 11 percent, delivering $869 million in revenue for the quarter.

The two divisions that faltered this quarter were the Microsoft Business Division and the Entertainment and Devices Division. The Business Division pulled in $5.7 billion, down 10% compared with last year's Q2 revenue result. Microsoft's earnings statement claims that Business Division earnings were really down just 3% for the quarter, using non-GAAP accounting methods, if upgrade and presales offerings are considered. The Entertainment and Devices Division produced $3.8 billion in revenue, down 11% compared with last year's Q2 period. If that figure were adjusted with non-GAAP accounting, factoring in a video game revenue deferral, the revenue decrease for the Entertainment and Devices Division would be just 2%, according to Microsoft.

Microsoft noted some positive signs on the horizon. Chief Financial Officer Peter Klein indicated in a released statement that the company's licensing renewals across the Windows, Server and Tools and Business Divisions "grew double digits" for the quarter.

Microsoft's Q2 financials can be accessed at this page.

About the Author

Kurt Mackie is senior news producer for 1105 Media's Converge360 group.

Featured

  • How To Improve Windows 10's Sound and Video Quality

    Windows 10 comes with built-in tools that can help users get the most out of their sound and video hardware.

  • Microsoft Offers More 'Solorigate' Advice Using Microsoft 365 Defender Tools

    Microsoft issued yet another article with advice on how to use its Microsoft 365 Defender suite of tools to protect against "Solorigate" advanced persistent threat types of attacks in a Thursday announcement.

  • Microsoft FastTrack Support Extended to Microsoft 365 Defender Solutions

    The Microsoft FastTrack support program has been extended to Microsoft 365 Defender products for certain qualified subscribers, Microsoft indicated this week.

  • Microsoft 365 File-Size Support Expanding to 250GB

    Microsoft 365 users will be getting expanded file-size support, allowing files to be shared that are 250GB maximum in size, per a Microsoft announcement this week.

comments powered by Disqus