Windows 7 and Office 2010 bring Microsoft bling

Windows 7 and Office 2010 bring Microsoft bling

Software giant's profit jumped 51%, helped by its "twin engines" of Office and Windows

Sales of Office and Windows have seen Microsoft post record first quarter revenues of $16.2 billion, up 25% from the same period last year.

The spike in demand gave the software giant net income of $7.12 billion, up 51%. Operating income was $7.12 billion, up 69%.

Of that, the business division contributed $3.4 billion of profit, while the Windows and Windows Live unit was the next most profitable with $3.3 billion. Online services lost $560 million, however.

"The reports of the death of Windows and Office are premature - the company is still a cash flow machine," Colin Gillis, an analyst at BGC Financial, told Reuters. "People are buying about $10 billion worth of Windows and Office this quarter. The twin engines of Microsoft are still firing."

Microsoft also said revenue from the Xbox 360 was up 38%. Office 2010 revenue had grown 15% in its first quarter, while the company said last week that Windows 7 was its fastest-selling OS yet.

“Xbox momentum continued, with our console outselling every competing console in the US for the fourth consecutive month," said Peter Klein, chief financial officer at Microsoft.

"Bing use hit an all-time high, with almost double the number of queries since it launched last year and consumers continued to show their strong preference for Windows 7 and Office 2010."

Microsoft said it saw PC sales up by around 10%, with consumer sales in the double digits, adding that tablets weren't causing any trouble yet.

"Regarding netbook trends, we have seen consumers shift from buying netbooks to low-end notebooks and we have not seen a material shift away from low-end PCs due to tablets in the market," said Bill Koefoed, general manager of investor relations.

"Instead, we’ve predominantly seen consumers increase their number of devices and their usage scenarios."


This article originally appeared at

Source: Copyright © Alphr, Dennis Publishing

See more about:  windows  |  office  |  2010  |  boost  |  microsoft  |  profit

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