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Microsoft breaks records in latest Q2 2013 earnings report

Ballmer

Microsoft has revealed that during Q2 of its 2013 financial year it has broken revenue records with a taking of $21.5 billion. $6.38 billion of that grand total was actual profit, providing shareholder's with $0.76 per-share. While EPS was down year-over-year, net income is reported to be up from $5.87 billion a year ago. It's looking good for the company.

The Windows division was responsible for approximately $5.9 billion of Microsoft's revenue, up 24 percent from a year ago. This is mainly down to the release of Windows 8 late last year. It's somewhat interesting to note that while its Windows division was pushing forward, its business department was seeing a drop in revenues of 10 percent to $5.7 billion year-over-year.

Entertainment and Devices also saw revenues continuing to fall with the quarter ending with $3.77 billion reported. It's a 7 percent decrease compared to the same period last year, but is a jump over $1.95 billion in Q1 2013. Unfortunately this division is tied with the Surface, which hasn't gained as much traction as many hoped. This could be down to consumers waiting for the Surface Pro to launch, but we are speculating.

Online Services expanded, hitting $869 million in revenue, an 11 percent increase year-over-year. Advertising revenue was also up noticeably at 15 percent, which is largely down to increase in revenue-per-search. While it's not taking over the web anytime soon, it's positive to see Microsoft's online properties adding to the pool.

Growth overall wasn't at ridiculous levels, but it was notable and inline with what was expected from Wall Street. It's good to see Microsoft still hitting out and improving in areas it has struggled in for some time. We'll have a more in-depth analysis up soon with the earnings call taken into account and included in the updated coverage.

via: Engdget

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Reader comments

Microsoft breaks records in latest Q2 2013 earnings report

66 Comments

LOL! Yeah, right... I wish. I posted this news on FB, and an Apple fan I work with was already posting, "but how many of those licenses are out in the wild vs. just sold to OEMs?" and then criticized the notion that people might be using their license rights to downgrade to Windows 7. I just said, "So what? A sale is a sale... and people were still buying Windows XP for years after it went out of date." People who always want to criticize Microsoft will always whine about something.

I makes them feel good about themselves. Alot of that can be found at phonearena, an Android lovers site.

Ummm the division that handles WP is falling, so how can they shut up when its pretty hard to see a loss in revenue over last year as anything but gloom.

Did you even read the article?
"The Windows division was responsible for approximately $5.9 billion of Microsoft's revenue, up 24 percent from a year ago."

i think they merged it last year... i might be wrong though, i just remember something about it like that

It depends on when their fiscal year started. Many businesses don't have their fiscal years aligned with the calendar year.

You doubt what?  When a company is as big as MS they get to decide what year it is.  :)
 
Microsoft's fiscal year starts July 1st so July, August, September = Q1 2013 for MS.  October, November, December = Q2 2013 for MS. 

I was hoping to hear that the Surface was doing better. I'm an owner and very happy with it but a little worried that its not going to catch on which would mean the support and development won't be there.

Depending on whether your talking rt as a whole, which I'm sure will get support, so surface will get support.

I think the fear is that we may see another WP7->WP8 repeat here with the Surface.  I've noticed the current Tegra 3 CPU will lag a bit at times.  The new Tegra 4 and other ARM CPU's are going to represent a massive boost in performance.  While I think a dual core Tegra 3 ought to be able to handle Windows 9 RT, or whatever they will call it, I could easily see MS claiming that Tegra 3 can't handle Windows 9.  Now if 50 million people bought the Surface RT, I wouldn't worry about MS trying to pull that.  But if its only around 1 million, they might, like they did with WP7.  But oh well, these days I try to just appreciate devices for what they are, not what they could be in the future.

Well it is just called windows rt. It would be illogical for a windows phone7/8 fiasco to go down as that was primarily due to the kernal change from CE to NT. There would be no reason to do it again, since all the devices minus the Xbox share the kernel

For some reasons other sites made me feel bad about MS' profit. They made it seem as if making a profit is bad... Weird.

Entertainment & Devices will see big improvements when the Surface is stocked in retailers, here in the UK. Last time I checked PC World said they'd be stocking them in Jan...

I still would like to see acutal numbers on OEM sales vs. retail, online upgrade sales.
 
I love Windows phone 8 but, I am still one that dislikes Windows 8 a lot, I still use it and dual boot with it but, I would prefer Windows 7 100% of the time.

Most of the people that say they don't like it have barely used it, but in your case it sounds like you have spent some time with it.  Which makes me curious what is it that you don't like about Windows 8? 

People hate change. Its human nature. Even if its good change. Windows 8 isn't perfect. But it is definitely better than windows 7. It will just take time for people to get use to it.

One thing worth noting here is that Microsoft's fiscal year 2nd quarter was October, November, and December of 2012.  Windows 8, WP8, and surface were not released until the very end of October.  The fact that those products had a significant possitive impact (a Q2 revenue record for MS) on the quarterly results is impressive considering the products weren't even available for the full quarter.  In addition to that, WP is only now being released into other huge markets such as Asia and South America.  Surface Pro is also unreleased.  I'm guessing the results for next quarter (the current quarter) are going to be even more impressive.  I guess we will know in a few months, but I think MS is in a very good position right now.

As for smartphones, wasn't it 2% with 20 million devices Q4 2012? In politics, 3% is the statistics possible error, isn't it? MS worked hard to make sure people don't want to buy their products... Well, except some, mainly teenage fanboys who

love the bright colours etc. The uTheusability of MS smartphones is circa 2010 though - that meagre number of apps available makes MS basically 3rd league players in the smartphone world. The fragmentation they've just introduced by cutting WP7 users off doesn't help develop more apps either, dies it. Has anybody checked MS shares prices lately?

This great news. I read Last week many teenagers love windows 8 computers. They are now ditching apple os.

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