Microsoft releases record earnings

By Phil Nickinson
last updated

It looks like AT&T isn't the only company sharing positive earnings reports these days. Microsoft has released its earnings report for the second quarter, which ended Dec. 31, 2009, and the numbers are impressive. Microsoft earned $19.02 billion last quarter, a 14% increase over the same period last year. Year-to-date earnings were at $31.94 billion, slightly ahead of last year's pace, which was $31.69 billion.

Microsoft is crediting Windows 7 for the growth. Peter Klein, Chief Financial Officer for Microsoft states, "Exceptional demand for Windows 7 led to the positive top-line growth for the company. Our continuing commitment to managing costs allows us to drive earning performance ahead of the revenue growth." Through the second quarter, Microsoft has sold over 60 million Windows 7 licenses.

Hopefully, seven will be Microsoft's lucky number and similar results will be experienced when they release the next "7" with Windows Mobile 7. Speaking of which, Microsoft confirmed during the earnings conference call that WM7 would be shown at next months Mobile World Congress in Barcelona.  It will be interesting to see how much we've heard about Windows Mobile "Seven" is fact or fiction.

You find all the numbers and details of Microsoft's earning report here (opens in new tab).

Phil Nickinson
Phil Nickinson

Phil is the father of two beautiful girls and is the Dad behind Modern Dad. Before that he spent seven years at the helm of Android Central. Before that he spent a decade in a newsroom of a two-time Pulitzer Prize-finalist newspaper. Before that — well, we don't talk much about those days. Subscribe to the Modern Dad newsletter!

26 Comments
  • First comment, nice. Furthermore, "Exceptional demand for Windows 7 led to the positive top-line growth for the company." What a joke, it wasn't "exceptional demand", it was exceptional necessity because Vista, along with most of their products, was a piece of garbage. Let the bashing commence, unleash your [removed 3rd grade level insult by a forum troll].
  • Since your apparently an expert on Windows Vista, could you explain what your 5 biggest complaints about the OS are?
  • Who said I was an expert? I was simply a user of Vista, who is now on 7, and I couldn't be happier. But to answer your question: 1. Resource requirements were a joke.(RAM)
    2. Hardware and software compatibility
    3. The file browsing system was a complete failure.
    4. Network file sharing. (Even copying files was horribly slow)
    5. Perpetual Windows Explorer failures. And it wasn't my machine, I was running Vista x64 with 8GB's of RAM. So, there you go, there's your list.
  • 1. Almost every OS upgrade has increased memory requirements. Vista does a number of things in the background that XP does not do. Volume Shadow Services and Disk Indexing are two prime examples. With an increased feature set, you will have additional hardware requirements. 2. Hardware compatibility is pretty vague, but Microsoft did a fairly good job of working with their partners to get things going fairly quickly. Also, the transition away from a HAL (Hardware Abstraction Layer) made for some interesting changes, but the benefits are huge. Software compatibility is more a reflection on the software developers than Microsoft. Most of the software issues that I've come across were issues with the way that the developer designed their application and/or didn't conform to current standards. Also, Vista had one of the largest beta programs in history, primarily to encourage developers to get their stuff ready for new security features such as User Account Control (UAC). 3. File browsing system was a complete failure? Are you talking about Windows Explorer? Besides all of the additional ways you can sort, filter, and group files; searching is much better than it ever was on XP because of the more integrated indexing features. 4. Network file sharing. This is vague. Performance issues? Security Issues? Sharing from the Vista machine or accessing network locations from that machine? This could be anything from a bad network connection to the way your antivirus software is configured. 5. Perpetual Windows Explorer failures. Vague, not sure what you've experienced, so I can't speak to it. I'm not trying to bash you, I just think Vista gets a bad rap, mostly from people who just assume it's bad because of commercials from a certain Microsoft competitor. Ever heard of Project Mojave? Thanks for being the devils advocate and occasional whipping boy! :P
  • 1. If every OS upgrade has increased memory requirements, why is Windows 7 a better operating system, yet far less bloated? 2. I agree, HAL was a step forward, but that still doesn't explain my I had to trash my perfectly good printer. Software developers didn't immediately start migrating to Vista for the simple fact that they saw first hand how inferior of an OS it was. Also, once beta's started rolling out, and customers started negatively reviewing it, that just solidified what they already knew. Maybe the manufacturer's know a P.O.S. OS when they saw one? But it's a cart and horse problem. I won't upgrade until I know all my peripherals can work on the new OS, while mfrs won't write drivers for OS's with small user bases. However, the OS should be good enough to have a layered driver mode that accepts legacy drivers. Otherwise you are killing off peripherals that haven't been manufactured in the last few years. 3. From what I've seen, this new search feature, to put it simply indexing, causes your HD to run at 100% all day every day. Probably a great way to ruin HDs. But yeah it is an admittedly useful thing. However, Google already has Google Desktop, which does the same thing, on any OS, and it's free, and faster. 4. I'll give you this one as being specific user related. I had some wicked stuff going on with my network. (not to be attributed to #5 though.) 5. Windows Explorer would crash, literally crash, at least 2-3 times a day, for no good reason. Sometimes it happened when I had a couple of memory/cpu intensive apps open. Other times when I was composing an email. It would just tell me that Windows Explorer has encountered a problem and needed to restart. Multiple emails and thread posts on Microsoft's site yielded nothing. I know you're not trying to bash me, it's cool, I know plenty of the people you're describing. People who hated Vista for absolutely no reason. Maybe they heard some Linux loving tech support guy at their office bash it and thought they should hate it too because he was a tech guy, I don't know. But I experienced it first hand. I love being the occasional whipping boy, it's the sadomasochist in me.
  • I hate to be blunt, but there had to be something wrong with your install. Saying "Vista is crap" is like saying the iPhone is crap. Sure, there are legitimate issues; but making generalizations like saying the whole OS is worthless is unfair and wrong. I personally have used a number of different Vista machines and have had plenty of success with it. Some of the features are simply not available in earlier versions of Windows. Sure, Windows 7 is an improvement; but that doesn't mean Vista is crap.
  • edited as I replied to the wrong post.
  • Vista was a complete and utter failure. PERIOD! I had to SUFFER with Vista so I'm not talking about what I heard from somebody else. Project Mojave was an insult to intelligent users. They picked users who had not used (or rather suffered with) Vista and put them in front of machines optimally built to make Vista look good. The case is that my 4-year old 3GHz P4 desktop with 2GB of RAM and a 500GB, 7200rpm hard drive ran XP Pro smoothly. The machine came to a crawl once I installed Vista Ultimate. Now, the EXACT same hardware configuration is running 7 Ultimate almost as smoothly as XP. This attest to how much of a piece of crap Vista was. I did not need to upgrade my hardware at all, going from XP to Vista to 7 and I'm enjoying with Windows 7 the level of performance I was expecting from XP's successor. Stop defending Vista. It was a complete failure. Plain and simple.
  • Alright...I'll be blunt. Either you don't have the skills to configure and troubleshoot Vista, or you don't have the desire. Either way, the problem is not Vista. If Vista is a complete and utter failure, explain to me why the United States Air Force is in the process of moving exclusively to Vista?
  • I'll go ahead and ask the obvious question here, why should he HAVE to be a configuration or troubleshooting wizard to run his OS out of the box properly? It should just work. And you should do your research just a tiny bit more. The Army is running a highly modified version of Vista. So modified in fact that it's essentially NOT Vista. Source: My uncle, who is one of many doing the migration.
  • As I said, the Air Force, for which I work as an IT specialist. I am also a Microsoft Certified System Engineer and a Microsoft Certified IT Professional. I am currently certified on XP, Vista, Server 2003, and Server 2008. What research did you have in mind? I never said he had to be a wizard. What I meant is that if there is a performance issue, it isn't because the os "sucks", it is because there is something wrong with the way it is configured. It's not Microsoft's fault if someone didn't install or configure their OS properly.
  • Then you lie by omitting by not mentioning that the "Vista" that is being install for the military is anything but. And how exactly does a person configure an operating system wrong when installing? It's a pretty automated process.
  • Considering most major IT departments and firms *skipped* Vista, that's not a very satisfactory answer, Mr. Balls. WinXP was and is still going strong, especially with the extended support and SP3 provided by Microsoft. *No*, what made Win7's rapid adoption was great word of mouth and positive reviews. Tied into that was Microsoft's "free" updates to anyone who bought a Vista computer in the last half of 2009, the advent and adoption of Netbooks (along with MS's cheap licensing fees for those, driven by competition from Linux)and overall just a good product and yes, the market responded appropriately. Granted, that's not nearly as juvenile and inflammatory as your "analysis", seeing as mine lacked slurs and such but hey...
  • You're right, most major IT departments and firms did skip Vista, it's the rest of the users I was referring to. You know, the majority, the 66% of people who actually did get stuck with it. The average Joe Blow, the small business, the uneducated. And I like how you edited your post, how you took out your own "slur" to make your last line on me true. The difference, Maletesta, I was attacking a product, an inanimate object. You took to insulting my father. Kudos, way to show me how to be mature and civilized.
  • You like that, eh? Cause and effect, take responsibility for what you write and the ignorance you post. Do you like how I also edited your 1st post to remove offensive language from a blog? Keep it up around here Mr. Balls and your stay will be short... And stop making up numbers, this "other 66%, the majority". Unless you can cite specific references Saggy, your hyperbole comes across as just an angry rant with a personal gripe. Because it just doesn't add up how *"The average Joe Blow...the uneducated"* all knew how to purchase and upgrade to Win7 and drive it to become the fastest adopted OS for Microsoft. They're either dumb and clueless or smart and computer savvy, not both.
  • Then remove me you tool, I assure you, I'll be ok. And Thank you for instilling in me the value of responsibility. Unfortunately, I didn't NOT take responsibility for what I said, hence why I'm still here discussing this with you, you tool. The people that I speak of are the people who blindly jumped into Vista, and why wouldn't they? They had it real good, for a very long time with XP. I'm not saying they're uneducated in the sense that they don't know how to upgrade their OS. That would be presumptuous and a tool thing to do, hence why you did it. I merely meant that they're not tech geeks, and that they don't typically do their homework before upgrading. But after getting completely screwed by Vista, they learned their lesson, did the groundwork, and discovered 7 to be a great OS. Anything else, tool, or can we move on? And if you want specific references, google it. Anything that I provide you here you're just going to dismiss as incredible. Let's review one last time: 1. Vista was a horrible operating system.
    2. Windows 7 is a fantastic operating system.
    3. The Zune is absolute garbage.
    4. The X-Box is mediocre at best.
    5. You're a tool.
    6. You're a tool. (worth repeating)
  • You know, you keep using flawed logic. Vista has some flaws, which makes it horrible. The iPod (and iPad) have some flaws, which we say makes it less than impressive; but apparently we are biased. Either I'm missing something, or you just enjoy sowing hate and discontent.
  • Flawed logic? Please, explain. And how can you accuse me of sowing hate and discontent when I have been saying this entire time that Windows 7 and XP were phenomenal and outstanding operating systems? I'm obviously not some Microsoft basher.
  • In conclusion, Windows pretty much blows as a software company, and unequivocally as a hardware company.
  • Tell that to all of the Xbox360 users out there.
  • What's that? I couldn't hear you over your red ring of death.
  • Touche. Full disclosure, I'm a Wii user; but Project Natal has me intrigued.
  • For the first time, you and I are in complete agreement, and it feels nice. :)
  • Oops, I meant Microsoft as a company. My bad. And I call myself a troll, pffft.
  • As operating system launches go, Windows 7 has been a pretty sweet one for Microsoft. I think it is the main reason for the impressive results.
  • THe demand IS NOT for WIndows 7..It is the pent up demand for UNTS , unfortunately for US, there are too many illiterates who take whatever OS is shoved doWn their throats..Me> I am tired of windows and using UBUNTU ..EVERYTHING WORKED , video, audio, webcam, and network INSTALLED FLAWLESSLY. UNLIKE WINDOWS WHICH LOOKS FINE DURING THE PROCESS BUT WHEN IT'S TIME FOR THE FINAL REBOOT FOR USE IT ALL OF SUDDEN CAN'T FIND A DRIVER CAPABLE OF OVER 800X 600, THE AUSIO DOESN'T WORK, THE CAMERA DOESN'T WORK, CAN'T ACCESS THE INTERENET TO OBTAIN DRIVERS AND THE TYPICAL WINDOW INSTALL GOES ON, ON AND ON...WINDOWS DOES, AND HAS, SUCK.ANYONE WITH THE LEAST BIT OF AMBITION WOULD REFUSE ANY HARDWARE USING WINDOWS, IT BLOWS for PC, LAPTOP, CELLPHONES ETC....I'VE HAD MY LAST POS COURTESY OF THEM..GOOD LUCK