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Microsoft reported strong third-quarter sales and earnings, as the software giant weathered slowing PC sales with strong performances from its Office andXbox businesses.
Net income in the company's fiscal third quarter climbed 31 percent to $5.23 billion on sales of $16.43 billion, a 13 percent gain.
"We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," Microsoft's chief financial officer, Peter Klein, said in a statement. "Consumers are purchasing Office 2010, Xbox, and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications."
The number many analysts were watching is the Windows revenue line. That's because industry analyst IDC reported two weeks ago that global PC shipments declined 3.2 percent from January to March, compared with the year-ago period. Despite chip-maker Intel posted a blowout quarter last week, Microsoft's Windows business suffered.
Though Microsoft says Windows is the fastest selling operating system in history with 350 million licenses sold, revenue for the flagship business fell 4 percent in the quarter to $4.45 billion.
That slide was offset by huge growth in the Microsoft Business Division, comprised largely of the Office suite of productivity applications. That business, which generates more revenue than the Windows division, saw revenue grow 21 percent to $5.25 billion, fueled by sales of Office 2010, released a year ago.
Microsoft also got a big bounce from the Entertainment & Devices Division, where sales grew 60 percent to $1.94 billion. Microsoft's motion-sensing game controller, Kinect for Xbox 360, drove much of those sales. The device, launched before Christmas, became the fastest-selling consumer electronics device in history. The company also said it sold 2.7 million Xbox 360 consoles in the quarter, a 79 percent increase from the year-ago period
Microsoft's Online Services Division, the home for its Bing search engine and other Web properties, continues to hemorrhage money, as losses grew 2 percent to $726 million.The company noted that its operating expenses for the fiscal year that begins in July will climb to between $28.08 billion and $28.6 billion. That's a 3 percent to 5 percent jump from previous guidance, presumably reflecting the recently announced compensation plan for employees, which pays more cash and less stock.
We will update this story with details from the company's conference call with investors, analysts, and reporters.
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Net income in the company's fiscal third quarter climbed 31 percent to $5.23 billion on sales of $16.43 billion, a 13 percent gain.
"We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," Microsoft's chief financial officer, Peter Klein, said in a statement. "Consumers are purchasing Office 2010, Xbox, and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications."
The number many analysts were watching is the Windows revenue line. That's because industry analyst IDC reported two weeks ago that global PC shipments declined 3.2 percent from January to March, compared with the year-ago period. Despite chip-maker Intel posted a blowout quarter last week, Microsoft's Windows business suffered.
Though Microsoft says Windows is the fastest selling operating system in history with 350 million licenses sold, revenue for the flagship business fell 4 percent in the quarter to $4.45 billion.
That slide was offset by huge growth in the Microsoft Business Division, comprised largely of the Office suite of productivity applications. That business, which generates more revenue than the Windows division, saw revenue grow 21 percent to $5.25 billion, fueled by sales of Office 2010, released a year ago.
Microsoft also got a big bounce from the Entertainment & Devices Division, where sales grew 60 percent to $1.94 billion. Microsoft's motion-sensing game controller, Kinect for Xbox 360, drove much of those sales. The device, launched before Christmas, became the fastest-selling consumer electronics device in history. The company also said it sold 2.7 million Xbox 360 consoles in the quarter, a 79 percent increase from the year-ago period
Microsoft's Online Services Division, the home for its Bing search engine and other Web properties, continues to hemorrhage money, as losses grew 2 percent to $726 million.The company noted that its operating expenses for the fiscal year that begins in July will climb to between $28.08 billion and $28.6 billion. That's a 3 percent to 5 percent jump from previous guidance, presumably reflecting the recently announced compensation plan for employees, which pays more cash and less stock.
We will update this story with details from the company's conference call with investors, analysts, and reporters.
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