Earnings: Microsoft's Profits and Revs Up; Shored By XBox 360 Sales; Online Losses Increase
This story was written by Rafat Ali.
Microsoft (NSDQ: MSFT) has announced its Q308 earnings, and its revenues are profits are up for the quarter, boosted in part by healthy sales of Xbox 360 consoles. Revenues came in at $15.06 billion, a 9 percent increase over the year-ago quarter. Net income was $4.37 billion, up slightly $4.29 billion in the year-ago quarter. The company is also downward revising its estimates for next year in keeping with the economic environment, especially for second half of 2009.
Division wide: in its Entertainment and Devices Division, which includes XBox and Zune, revenues came in at $1.81 billion, down from $1.93 billion in the year-ago quarter. Operating income for the division was $178 million, up from $167 million in the year ago quarter. In its Online Services Business unit, which includes MSN and other online advertising services, revenues came in at $770 million, up from $671 million in the year ago quarter. Operating losses for the division widened significantly, to $480 million, from $267 million in the year ago quarter.
And the pitch this quarter from MSFT: we can help you save money. "Our customers are asking how they can save money and do more with less...Microsoft is uniquely positioned to help our customers save money through supplier consolidation, increased productivity, and a low total cost of ownership through the depth and breadth of our product portfolio and solutions." Yes, funny.
More to come...More info in the release.
By Rafat Ali