Microsoft Reports Record Revenue: Up 5% To $20.9B, Earnings At $0.78 Per Share

[techieguy]

Microsoft just reported its second quarter 2012 earnings with record revenues of $20.9 billion, an 5% increase from the same period of the prior year. The previous record, as far as I can Bing Google, was 19.95 billion in quarter 2 of 2011 (another holiday season).

Microsoft's operating income, net income, and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion, and $0.78 per share, compared with $8.17 billion, $6.63 billion and $0.77 last year.  Perennial loser the Online Services division (which includes Bing) lost another $458 million and Entertainment (which includes xBox) and Windows operating profits were also down.

"In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect," said COO Kevin Turner in a release, "We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8."

View this document on Scribd The company beat Wall Street's revenue estimates as analysts were expecting earnings of $0.76 per share, with estimates ranging between $0.68 and $0.80. And it hit expected revenue square (about $20.9 billion), with estimates between $21.4 billion and $20.2 billion.

Microsoft's earnings call will be at 2:30PM today, and you can follow it live here.

MICROSOFT CORPORATION
							SEGMENT REVENUE AND OPERATING INCOME (LOSS)
							(In millions) (Unaudited)
			Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Revenue
Windows & Windows Live Division	$    4,736		$  5,056		$    9,604		$  9,843
Server and Tools	4,772		4,288		9,022		8,149
Online Services Division	784		713		1,425		1,260
Microsoft Business Division	6,279		6,110		11,886		11,312
Entertainment and Devices Division	4,237		3,698		6,198		5,493
Unallocated and other	77		88		122		91
Consolidated	$  20,885		$19,953		$  38,257		$36,148
Operating income (loss)
Windows & Windows Live Division	$    2,850		$  3,214		$    6,101		$  6,502
Server and Tools	1,996		1,711		3,593		3,248
Online Services Division	(458)		(559)		(971)		(1,132)
Microsoft Business Division	4,152		4,087		7,839		7,570
Entertainment and Devices Division	528		666		877		1,050
Corporate-level activity	(1,074)		(954)		(2,242)		(1,957)
Consolidated	$    7,994		$  8,165		$  15,197		$15,281

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