Microsoft Shatters Earnings Expectations

Microsoft announced today revenue of $17.4 billion for its fiscal third quarter, doing far better than the analyst community expected. This revenue is up 6% from last year, a record for the company. The stock price continues to rally on the news, up more than 30% in six months.

Most surprising was the company’s Windows revenue, which was up 4%. Computing is moving farther from the PC platform and more towards the tablet marketplace so the growth is surprising. That said, the positive revenue growth is consistent with news that caught many off guard earlier this year that PC sales were up throughout the world in the first quarter of 2012. Also curious is the fact that growth for Windows is occurring even though Microsoft’s newest operating system has not even come out yet. You would think that most would be wanting to check out the new operating system before making a purchase.

The company’s only faltering division is Entertainment and Devices. Microsoft saw a $1.62 billion loss in revenue, a 17% decrease from last year. Ouch.

According to news today from Bloomberg, Microsoft will be selling most of the 800 patents it bought from AOL earlier this month. Microsoft might look to sell the patents to Facebook, the company it originally outbid for the patents.

The company is falling behind in the smartphone marketplace. Nokia is in a dire crisis, and is betting on Microsoft’s newest smartphone operating system to really do well. Peter Klein, the company’s CFO said that, “We are pleased with our Nokia partnership, and the pace of innovation across devices.” This is unexpected considering Nokia’s epic struggle to stay alive.

Microsoft’s future looks bright if Office 15 can seamlessly integrate cloud-based technology. Microsoft’s Metro interface, used by Windows 8 and Office 15, is designed with the tablet in mind.

Trackbacks/Pingbacks

  1. Microsoft Sells Facebook Patents For $550 Million | WholeLottaWonder! - April 23, 2012

    […] has been having a great run recently, and today the company announced that it will be selling off patents to Facebook for $550 million. […]

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