Microsoft reports its earnings for Q3
One might think that the Redmond giant’s earnings would have taken a beating after a double whammy of having both antitrust regulators and stiff competition snapping away at its heels. Surely Microsoft’s profits would have suffered, right? Apparently not.
Read on for more information.
hings seem to be rosy over at Microsoft Corp, and for good reason too; the company had just reported its earnings for Q3 2010, and the numbers are looking extremely good for the Redmond giant.
According to Microsoft, Q3 revenue of $14.50 billion is up by 6% from the same period of the prior year, while operating income, net income and diluted earnings per share were at $5.17 billion, $4.01 billion and $0.45 per share respectively, which translated to increases of 17%, 35% and 36% as compared to the previous year.
Quite unsurprisingly, the strongest performer for Microsoft was its Windows and Windows Live Division, which scored an increase of nearly $8 billion, which is most likely the result of its successful Windows 7 operating system gaining rapid adoption in the PC market, while the Entertainment and Devices Division (aka Xbox division) has finally posted its first profit of $165 million over last year’s loss of $41 million.
Unfortunately, the same can’t be said for Microsoft’s Online Services Division, which posted a staggering loss of $713 million, or approximately $300 million more than what it lost last year. However, Microsoft has reason to remain optimistic: according to Microsoft’s presentation slides, online advertising revenue has gone up by 19%, while Bing also managed to improve on its market share, signifying that there is still some hope in store for this division.
All in all, not a bad showing from Microsoft.