Microsoft enjoyed strong income and revenue growth for its third fiscal quarter despite sluggish PC sales, with Xbox and Office doing well, the company reported yesterday.
For the quarter ended 31 March, Microsoft reported net income of $5.23 billion, up 31% from the same period last year. Third-quarter revenue was $16.43%, a jump of 13%. Diluted earnings came in at $0.61 per share, up 36%.
Despite becoming the fastest-selling operating system in history, Windows 7 revenue shrank by approximately 4% when compared to the same time last year, from $4.6 billion to $4.4 billion. The company attributed this slackening of demand to sluggish PC sales.
Entertainment and devices division revenue grew by 60%, coming in at $1.9 billion this quarter, up from $1.2 billion a year ago, owing to strong sales of the Xbox, the Xbox Live service and the Xbox Kinect controller.
Server and tools division revenue grew by 11 percent, to $4.1 billion from last year’s $3.7 billion, thanks to continued demand for Windows Server 2008 R2, SQL Server 2008 R2 and other products and services.
Not all the business units proved to be profitable, however. The online services division posted a $726 million loss, which is actually a 3% increase from the $709 million loss the year before. The company’s agreement to provide Yahoo with search technology has also been criticised for lacklustre early results.
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