Microsoft Q2 income up 3% to $21.45 billion

Infotech Lead Asia: Microsoft has posted 3 percent increase in revenue at $21.456 billion in second quarter ended December 2012 against $20.885 billion in the same quarter last year.

Microsoft’s net income decreased 3 percent to $7.771 billion from $7.994 billion.

READ: Microsoft’s financial result for Q2

According to Microsoft, Q2 financial results reflect the net deferral of revenue for the Windows Upgrade Offer, Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the recognition of previously deferred revenue for Windows 8 Pre-sales.


“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, chief executive officer at Microsoft.

Windows Division posted revenue of $5.88 billion, up 24 percent.

Microsoft has sold over 60 million Windows 8 licenses to date.

“Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division,” said Peter Klein, chief financial officer at Microsoft.

The Server & Tools business reported $5.19 billion of revenue, up 9 percent, driven by double-digit percentage revenue growth in SQL Server and System Center.

“With the launch of SQL Server 2012 and Windows Server 2012, we continue to see healthy growth in our data platform and infrastructure businesses and win share from our competitors,” said Kevin Turner, chief operating officer at Microsoft. “With the coming launch of the new Office, we will provide a cloud-enabled suite of products that will deliver unparalleled productivity and flexibility.”

Microsoft Business Division posted $5.69 billion of revenue, down 10 percent. Revenue from Microsoft’s productivity server offerings – collectively including Lync, SharePoint, and Exchange – continued double-digit percentage growth.

Online Services Division reported revenue of $869 million, up 11 percent. Online advertising revenue grew 15 percent driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11 percent.

Xbox continues to be the top-selling console in the United States. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.

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