Microsoft Q3 2013: Profit Up 17% To $5.2 Billion
Microsoft has reported their Q3 2013 results. Net income for the first fiscal quarter has increased 17% to $5.2 billion (62 cents per share). Thomson Reuters polled analysts that came up with earnings at 54 cents per share. Microsoft’s revenues were higher-than-expected at $18.5 billion, which is an increase of 16% over the year. This beats forecasts of $17.8 billion.
“We saw strong focus across our teams, generating record first-quarter revenue even as we navigate a fundamental business transition. Our enterprise renewals were very healthy and our devices and consumer business continued to improve,” stated Amy Hood, chief financial officer at Microsoft. “We are making strategic investments in areas like technological innovation, supply chain management, and global cloud operations to build for the future and create long-term shareholder value.”
Here are some other highlights from the Q3 2013 results:
– Microsoft Windows sales dropped 7%. The Windows 8 operating system is struggling to appeal to consumers.
– Bing.com ad sales grew by 47% over the last year though.
– The corporate software division grew by 10%
– Microsoft sold $400 million in Surface tablet sales for the quarter. Unfortunately, Microsoft had to write off $900 million worth of inventory in July.
– In the quarter, Microsoft agreed to buyout Nokia for $7.2 billion. Former Nokia CEO Stephen Elop is being considered as a successor to Microsoft CEO Steve Ballmer.