Microsoft sees 'record' quarterly results
updated 08:40 am EST, Fri January 25, 2008
Microsoft Q407 Results
Microsoft enjoyed its best-ever holiday quarter last year, the company reports. The software developer says it earned $16.4 billion in revenue, or about $2 billion more than any other such quarter in the past; earnings of 50 cents per share also represented almost double what the company has achieved in the past, according to the results. The growth is credited primarily to Microsoft's core Client and Business divisions, which are responsible for Windows and Office respectively. Although sales of 100 million copies of Vista are considered disappointing in relation to XP, the new software helped the division grow by an average 20 percent. The company has 'hit its stride' with Windows customers in this period, says Microsoft Platforms and Services head Kevin Johnson.
The Redmond, Washington-based company was also helped by a dramatic turnaround for its Entertainment and Devices branch, which addresses both the Xbox 360 game system and the Zune line of media players. Microsoft switched from a $302 million loss for the same period in 2006 to a $357 million profit chiefly due to the launch of Halo 3 spurring console sales as well as less expensive manufacturing for the systems. Microsoft did not discuss the health of its Zune business but notes that the result is the first time the Entertainment division has turned a profit in the same timeframe.
Forecasts are also said to be aggressive for the winter quarter, which should see revenues between $14.3 and $14.6 billion and will reflect a relatively mild drop from the surge in holiday-related sales.
good investment
01/25, 10:43am reply
MSFT options have been a great investment over the last year. Same upside as AAPL *had* and almost none of the downside.
AAPL the last week: ouch. Wonder if it is time to scoop up some AAPL cheap. Though the call options are looking a bit expensive.
gor3don
Fresh-Faced Recruit
Joined: Nov 2005
good investment?
01/25, 11:14am reply
Excuse me?
3/07-1/08 MSFT +7 3/07-1/08 AAPL +50
Both companies experienced the down turn mirroring the recent market trend. MSFT never had the upside the AAPL enjoyed. MSFT stock followed the market trends until the end of last Summer, when it began to exceed modestly the market trend, whereas AAPL has increasingly exceeded the market trends for nearly the past year. AAPL is still at a much better position, up about 50 points versus MSFT's about 7 over the same time period.
maccam
Fresh-Faced Recruit
Joined: Sep 2005
viz. Apple
01/25, 01:17pm reply
I find it interesting that Apple is able to do $9B/quarter while MS's "best ever" quarter is $16B. This would imply that Apple is doing about half the business MS is doing, which would have been unthinkable just a couple of years ago. Extraordinary!
Further, it proves something Steve Jobs said a while back is correct: that if MS lost a few points of marketshare to Apple, they wouldn't notice but it would make a huge difference to Apple. Seems he was spot-on: both companies reported their best-ever quarterly results this week.
chas_m
Fresh-Faced Recruit
Joined: Aug 2001
monies
01/25, 02:24pm reply
Damn, thats a good sales quarter. I guess thats why Balmer is paid the big bucks.
coldfusion1970
Fresh-Faced Recruit
Joined: Nov 2004
yes, good investment
01/25, 05:26pm reply
maccam
I was talking about the call options for MSFT. They have almost doubled for me in the year. And I didn't get the downdraft that APPL has had in the last week.
Based on share price, Mar 1, 2007 to today, AAPL is up 50% but MSFT is up 17% in the same time. That's the beauty of options.
gor3don
Fresh-Faced Recruit
Joined: Nov 2005
if you believe RDM
02/01, 11:54am reply
It's all an illusion!
http://www.roughlydrafted.com/2008/01/31/video-game-consoles-2007-wii-ps3-and-the-death-of-microsofts-xbox-360/
Personally, I think Dan is full of it on this subject.
Robb
Fresh-Faced Recruit
Joined: Feb 2000