Microsoft Windows Revenue Flat in Q3 Earnings
Microsoft announced fiscal third quarter revenues showing Windows revenue flat after adjusting for the Windows Upgrade Offer.Microsoft reported fiscal third-quarter revenues of $20.49 billion and profits of $6.06 billion, up 18 percent and 19 percent, respectively, over the same quarter a year ago. Ironically, the software giant achieved these numbers in spite of a slump in PC sales, as revenues from the company’s Windows division rose to $5.7 billion--a 23 percent increase over the third quarter of 2012. However, after adjusting for the $1.1 billion of revenue related to Microsoft’s Windows Upgrade Offer, the Windows division's revenue was flat. Microsoft did not provide any new numbers on sales of its Windows 8 operating system. But, during the quarter, Microsoft added to the Surface family of devices with the Surface Pro. “The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE and Skype,” said Steve Ballmer, CEO at Microsoft, in a statement. “While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”
Microsoft stated that its Q3 financial results reflect the net recognition of revenue related to the Windows Upgrade Offer, Office Upgrade Offer and Pre-Sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the European Commission fine.