Microsoft quarterly revenues up 27 percent YOY on strength of Vista, Office 2007, Halo 3

Once again, Microsoft has made a gajillion dollars, all while dispelling myths about Vista's supposed problems:

Microsoft Corp. today announced revenue of $13.76 billion for the quarter ended September 30, 2007, a 27% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.92 billion, $4.29 billion and $0.45, respectively.

“This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999,” said Chris Liddell, chief financial officer at Microsoft.  “Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future.”

Microsoft’s businesses of Client, Microsoft Business Division, and Server and Tools grew combined revenue in excess of 20%, and experienced robust demand for Windows Vista, the 2007 Microsoft Office system, Windows Server, and SQL Server.

“Customer demand for Windows Vista this quarter continued to build with double-digit growth in multi-year agreements by businesses and with the vast majority of consumers purchasing premium editions,” said Kevin Johnson, president of the Platform and Services Division at Microsoft.

But wait, there's more. Microsoft announced that it has sold over 85 million copies of Windows Vista so far, 25 million of those in the past 3 months alone. And thanks to Halo 3, Microsoft's entertainment and devices division posted its second ever profit, this time for $165 million. Fear not, I'm sure they'll be back to losing money again next quarter.

Discuss this Article 8

daveinla
on Oct 25, 2007
No news here. Microsoft has always made money on Office and Windows only and one can expect that they do better the year they release a major update for both of them. Now for Vista's problem "myth"... They are widespread and tons of article and persons talk about they headaches, which is the reason why the adoption is growing so slow compared to what it should be. Mostly new PC buyer represent the new Vista adopters (who afterwards revert to XP for a big part of them !!).
weedmonk
on Oct 25, 2007
Dave is classic iSheep or better yet an iTard. Bitterly envious and he can't help himself. Microsoft's 'crappy" OS that 'everyone hates"....has overtaken the whole installed user base of KittyOSX1.X, two to three times over. Its 'competition' isn't the next iTurd out of Cupertino but a 5 year old OS called XP. Accept the irrelevance.
sharkrider
on Oct 25, 2007
I can't add this up!? How can selling Vista on less than half of all PC's sold last quarter be a success? Half of the new ones!? Besides the fact that no one seems to upgrade an old machine. In the article Mac Q3 2007 market share: 3.19 percent worldwide... Paul says that the estimated world wide sales of PC´s are 67,68 millions last quarter. Microsoft sells 25 million copies of Vista the same period.
brandon.pope
on Oct 26, 2007
Some people did buy Vista as an upgrade. Vista has been out a little less than a year, and I personally have had two pc's with vista. One was a Dell machine I upgraded, the other a new Acer laptop that came pre-installed. I live in a Fraternity House. Everyone has a PC. Its actually fun t to watch the stats paul throws out line ep almost exactly (give or take a 1/2 a person here or there) with the 60+ guys living in my house. 90% run Windows, (about half that Vista), The rest run OSX (A higher percentage than world wide, but this is college and thats a large section of Apple's penetration. By the way, of the guys who I have talked to using Macs, NONE have even considered running out to buy the new upgrade from Tiger. If fact, one guy said he was waiting for Leapord to come out so he can buy Tiger for a descent price. Interesting...
brandon.pope
on Oct 26, 2007
Some people did buy Vista as an upgrade. Vista has been out a little less than a year, and I personally have had two pc's with vista. One was a Dell machine I upgraded, the other a new Acer laptop that came pre-installed. I live in a Fraternity House. Everyone has a PC. Its actually fun t to watch the stats paul throws out line ep almost exactly (give or take a 1/2 a person here or there) with the 60+ guys living in my house. 90% run Windows, (about half that Vista), The rest run OSX (A higher percentage than world wide, but this is college and thats a large section of Apple's penetration. By the way, of the guys who I have talked to using Macs, NONE have even considered running out to buy the new upgrade from Tiger. If fact, one guy said he was waiting for Leapord to come out so he can buy Tiger for a descent price. Interesting...
joe-dokes
on Oct 26, 2007
Microsoft finally turning a profit on Xbox is a big deal. The big question is will they be able to continue this success through the Holidays, if they are able to do that then they may be able to finally cement themselves as the successor to the PS2. Weedmonk, you are either a troll, an idiot, or perhaps both. By shear inertia Microsoft has sold millions of copies of Vista. What is more interesting is that they have been unable to kill XP. Nearly a year after the release of Vista, approximately 1/3 to 1/2 of PCs are still being sold with XP. As it turns out the migration to Vista has been far more difficult than either the tech community or even microsoft imagined. As a result sales of XP machines have continued to be brisk. The difficulty in shifting to Vista is three fold. First a failure of many software vendors to update their programs to work properly. Second, the failure of hardware vendors to provide the drivers necessary for Vista. Third, the obscene hardware requirements of Vista that make many bargain basement machines unable to acceptably run vista. Regards Joe Dokes
weedmonk
on Oct 26, 2007
Joe...I was just referencing the FUD filled comments of Dave. "People immediately downgrading, adoption rates are slow etc etc". For Christs sake my company didn't transition to XP till mid '03 and people then kept b!ttchin about how Win2K was so much better. Vista has sold more than XP in the same period and the uptake in the enterprise channel has not been as slow as bleated on my media and parroted by closet iTards. In the online bubble everything seems to be iFantastic whereas MSFT is always in trouble and on the way out. The reality outside is that they're as robust as ever and the world still largely runs on the shoulders of redmond not some crap iTurd out of cupertino.
joe-dokes
on Oct 26, 2007
Weedmonk, In fact some people are downgrading to Vista, Dell is now selling XP preinstalled nearly a year after the introduction of Vista. In my view this is bad. Yes, MS has sold a boat load of Vista, but it is also selling a boat load of XP and this should on some level worry Microsoft. (For example, look at Sony the PS2 is Kicking the PS 3s Butt, should Sony be worried? I Think the answer is yes.) One of the key problems Vista faces is the insane hardware requirements. Many MS people like to point out that they can buy a PC for 400 Bucks. Because XP is seven years old any processor sold today can easily handle XP. For example, the school I work for insists on buying bottom of the barrel Dells. These machines come with 512 MBytes, and a 2.8 Ghz Celleron or the equivalent. They pay about 400 dollars a piece for these machines. These machines will NEVER be able to run Vista. As a result They are buying technology that is immediately obsolete. As for all the positive press about Apple. Yes, Apple is getting a lot of positive press. It now has a higher market capitalization than IBM. Not bad for a company that has been proudly going out of business for two decades. Apple has done a lot right, it continues to out sell the Zune by a ratio of about 30 to 1. The iPhone has been a success in spite of some of the negative publicity. And the Mac market share is increasing at a rate of approximately 2 to three times the overall market. Is the Mac market share still in the single digits? Yes, but it was and continues to be a key inovator on the desktop. Failure to understand the strengths of the Mac is a dangerous game to play. MS's key strength over the years has been its ability to be a fast follower and recognize quickly overall market trends. This includes seeing the strength of the Mac. Keep in mind that fully 20% of MS profits from Office come from the Mac Business unit, and as a result we can expect some big numbers out of redmond in March of Next year after they release a native copy of Office for Intel Macs. Regards Joe Dokes

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