Microsoft tops expectations with Q4 revenue of $17.37 billion

By on July 21, 2011, 6:30 PM

Hot on the heels of Apple reporting its all-time best quarter, Microsoft has released its fiscal fourth quarter results, posting $17.37 billion revenue with a net income of $5.87 billion, an increase of 8% and 30% from the same period in 2010. For the full year, the company pulled in a whopping $69.94 billion with a net income of $23.15 billion, up 12% and 23%, respectively.

Much of that cash was derived from Microsoft's Business Division, which witnessed a revenue growth of 7% in the fourth quarter and 16% for the full year. Office 2010 is chugging along and continues to be the fastest-selling version of the productivity suite with over 100 million licenses sold. Server revenue also fared well, experiencing double-digit growth quarterly and annually.

The company's entertainment segment felt the largest percentage boost with revenue increasing 30% from the year-ago quarter and 45% for the full fiscal year. Microsoft's press release claims that the Xbox 360 has been the top-selling console in the US over the past year and it attributed the division's healthy growth to "the ongoing momentum of the console, Kinect, and Xbox Live."

Meanwhile, the Windows and Windows Live Division's sequential revenue declined for the second time in a row, this time by 1%, while full year revenue fell 2%. This was in line with expectations as Windows 7 is reaching maturity and sales are slowing, not to mention the fact that non-Windows tablets have smothered netbook sales and the PC industry as a whole is somewhat stagnant.

The company's Online Services Division revenue grew 17% and 15% as Bing's US search share increased 14.4% in the most recent quarter. While that sounds great on paper (and growth certainly is good), the division reported a net loss of $728 million for the year -- even greater than 2010's $688 million loss. Check out the company's release for more figures and forward-looking statements.




User Comments: 18

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aj_the_kidd said:

the balmer pic on the home page is getting old

Staff
Matthew Matthew, TechSpot Staff, said:

I agree, I'll change it .

aj_the_kidd said:

Cheers, i guess for this story it was appropriate, Balmer (MS) getting the victory, but we've seen it many times before

Morgawr said:

Consider AMD reported as well, it seems rather odd not to include its results. It's nice to know that they are turning a profit again.... without a windfall from intel.

Archean Archean, TechSpot Paladin, said:

+1 aj, and reflect too much light

Guest said:

now if we can just get rid of that Apple rash.

:-p

Coodu Coodu said:

Losing money to software pirates? NONSENSE!

Guest said:

Microsoft's doing good and I am sure their Windows Phone 7 and subsequent phone OS's will win over a huge market share, if not dominate. Not because I am a Microsoft fan, but when you take the richest and biggest software company with strong R'n'D and combine with the biggest phone hardware maker and have the two work together and do their best work the result can only be top of the class.

This is do or die for Nokia and Microsoft's putting in all their effort in this one mobile OS and their phone ambitions. Upon using it myself the UI of the OS feels a generation ahead of anything on the market today. No matter how much Android and Apple have engraved themselves as the premier smartphone devices, when around December you will step into a dealer, the place will be flooded with WP7 devices in all price ranges and you won't have to be forced to buy it either, the device will convince itself.

Archean Archean, TechSpot Paladin, said:

Upon using it myself the UI of the OS feels a generation ahead of anything on the market today.

Having tried iphone (upto its 4th incarnation) and Android (on various phones including Xperia, Desire HD, SGS etc.) I will agree with your assertion, interfaces on both of these systems feel bit outdated and lacks ambition, well IMO Google simply nicked iOS's UI ideas and slapped them over their offering. Anyway, if MS/Nokia combination offers phones with a very stable OS + compelling hardware choices, it can be good for competition.

MilwaukeeMike said:

"attributed the division's healthy growth to "the ongoing momentum of the console, Kinect, and Xbox Live." that's putting it lightly. The Kinect was (is) the fastest selling consumer tech product ever with 10 million sold in 4 months. It's also unlocked and able to be hacked and therefore will continue to sell very well.

here's a cool story from WIRED about the Kinect for those intersted... It's the first depth camera and IR emitter to be commercially available, and is open for use on anything you want to attach it to because MS chose not to encrypt the data it produces. http://www.wired.com/magazine/2011/06/mf_kinect/

Guest said:

I wonder what the comments board would look like if/when SONY post their +Revenue?

Haters would do what they do best.

Anyways...congrats M$oft. But you dissed your core gamers an now focused on everything Kinect.

Its obvious you entered the gaming space just for the money an nothing more.

bye bye X-Box.

ragreeen2646 said:

Guest said:

I wonder what the comments board would look like if/when SONY post their +Revenue?

Haters would do what they do best.

Anyways...congrats M$oft. But you dissed your core gamers an now focused on everything Kinect.

Its obvious you entered the gaming space just for the money an nothing more.

bye bye X-Box.

Why does any company do what it does---MORE MONEY.

Guest said:

Wonder how much more money Microsoft would be making if it was still selling Windows XP licenses to all who wanted it.

aj_the_kidd said:

Guest said:

Microsoft's doing good and I am sure their Windows Phone 7 and subsequent phone OS's will win over a huge market share, if not dominate. Not because I am a Microsoft fan, but when you take the richest and biggest software company with strong R'n'D and combine with the biggest phone hardware maker and have the two work together and do their best work the result can only be top of the class.

This is do or die for Nokia and Microsoft's putting in all their effort in this one mobile OS and their phone ambitions. Upon using it myself the UI of the OS feels a generation ahead of anything on the market today. No matter how much Android and Apple have engraved themselves as the premier smartphone devices, when around December you will step into a dealer, the place will be flooded with WP7 devices in all price ranges and you won't have to be forced to buy it either, the device will convince itself.

I dont agree that MS is just going to dominate or gain a huge a market simply because its teaming up with Nokia and coming up with a new OS update. Apple and Android have established themselves, firmly, and will continue to change and improve. Yes MS has resources but Android and Apple already have a commanding lead and also have significant resources as well, granted not as much as MS but substantial nonetheless.

Now if MS was to create a phone which appealed greatly to business users then yes I can see MS eventually dominating the phone market, but in terms of mainstream, its still got a long way to go

Archean Archean, TechSpot Paladin, said:

Apple and Android have established themselves, firmly, and will continue to change and improve.

Once upon a time the only game in town was BB OS with what little share WinMo could get for itself. Then Apple came along with iOS, few years later Google joined the party and now is in pretty commanding position. So I wouldn't bet on this, there is always a room for something new / innovative / exciting.

aj_the_kidd said:

Archean said:

Apple and Android have established themselves, firmly, and will continue to change and improve.

Once upon a time the only game in town was BB OS with what little share WinMo could get for itself. Then Apple came along with iOS, few years later Google joined the party and now is in pretty commanding position. So I wouldn't bet on this, there is always a room for something new / innovative / exciting.

True but Apple came out swinging right from the get go, but, win7 phones, not so much. This was mainly because Apple and Android had peoples attention and to me win7 didn't really do much to deter it.

I can see MS dominating eventually but not because its teaming up with Nokia or bringing out an OS update, but by appealing to business users first, then breaking into mainstream.

Archean Archean, TechSpot Paladin, said:

True but Apple came out swinging right from the get go, but, win7 phones, not so much.

No they did not, just like WP, first release of iOS did not had many features e.g. MMS, third-party apps, and copy and paste etc. (to name few); so keeping all things in perspective, I don't think MS was that far behind. Another interesting option can be MeeGo, I am not sure why Nokia dumped it, but it seems just as capable as Android, however, I would say it could be better than Android if they continue to improve it, especially if Intel force everyone to maintain strict standards.

I can see MS dominating eventually but not because its teaming up with Nokia or bringing out an OS update, but by appealing to business users first, then breaking into mainstream.

Spot on, I have tried several Android smartphones, and TBH none of them are suitable for corporate environment, mainly due to lax control over the OS resulting in everyone doing their own stuff and adding an extra feature i.e. instability. One reason WinMo had a sizable market for itself for such long period was its stability and that is where MS have an opportunity.

aj_the_kidd said:

Archean said:

True but Apple came out swinging right from the get go, but, win7 phones, not so much.

No they did not, just like WP, first release of iOS did not had many features e.g. MMS, third-party apps, and copy and paste etc. (to name few); so keeping all things in perspective, I don't think MS was that far behind.

To me since it was new /exciting/innovative it did come out swinging, however win7 was not

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