Microsoft Sees Revenue Growth on Server and Tools as Xbox Drops
Microsoft reported a 6 percent boost in revenue for its fiscal third quarter of 2012, amidst a dip in net income and a poor showing for its Xbox business.Microsoft announced quarterly revenue of $17.41 billion for the quarter ended March 31, 2012, a 6 percent increase from the prior year period. However, net income slipped 2.4 percent for the quarter, as the same quarter in 2011 enjoyed the boost of a tax settlement with the U.S. Internal Revenue Service that raised profits. Net income for the quarter was $5.11 billion, compared with $5.23 billion in the prior-year period.
"We're driving toward exciting launches across the entire company, while delivering strong financial results," said Steve Ballmer, Microsoft's CEO, in a statement. "With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."
"Microsoft's Windows business is not in jeopardy of fading into the sunset in 2012, as a broad install-base and the continued use of Windows 7 on PCs in businesses worldwide continue to make Windows one of the most profitable businesses for the company (63.8 percent operating margin in 1Q12, behind only the Business Division at 64.8 percent operating margin). With that said, the successful launch of Windows 8 across mobile devices and tablets in 2012 will ensure sustained growth in both the consumer and enterprise markets.""We saw strong demand for our business desktop and infrastructure offerings," said Peter Klein, chief financial officer at Microsoft, in a statement. "Solid revenue growth and continued cost discipline drove double-digit operating income growth."