Lucky number: Microsoft CFO Peter Klein
Seven seems to have been a lucky number for Microsoft, which has delivered a strong quarter’s results to a financial arena that has grown increasingly doubtful about the company’s prospects.
Record sales of $16.2 billion in the first quarter of Microsoft’s fiscal 2011 were powered by the software giant’s core strengths in Windows and Office. However, analysts are pointing out that concerns about Microsoft’s long-term health remain – with one reason being the lack of a credible rival to the new generation smart phones that are taking the world by storm.
Businesses are upgrading their PCs, driving sales of new software, particularly Windows 7. Office 2010, launched in June, saw a strong start in its first full quarter on the market. The result was record sales of, the company reports.
Net profit was $5.4 billion, or 62 cents a share – well above the 55 cent level predicted by market analysts.
The profit increase was 51% compared with the same quarter a year ago, when Microsoft saw $3.6 billion, or 40 cents a share. (Accounting for $1.5 billion in deferred revenue from a Windows 7 upgrade program a year ago, profit grew 16%).
The $16.2 billion in sales represented a 25% increase from the previous year’s $12.9 billion. Analysts had predicted sales would come in at $15.8 billion. (Accounting for the deferred revenue, sales grew 13%.).
CFO Peter Klein, in a conference call with analysts and journalists, called the results “excellent”, and said they “reflect the ongoing strength and breadth of our product portfolio.”
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