Microsoft Q1 2013 Report Beats Wall Street Estimates Despite Sinking PC Sales
Microsoft didn’t need strong PC sales to blow away Wall Street estimates during its Q1 2013 earnings call.
Microsoft posted $20.49 billion in quarterly revenue with operating income of $7.61 billion and rising net income of $6.06 billion. The company reported a diluted earnings per share of $0.72.
Sales at the tech giant also surged to $20.5 billion
Hitting a bit home run for MSFT was its Business Division, which scored an 8 percent year-over-year increase to $6.32 billion in revenue.
Microsoft’s Server & Tools business reported $5.04 billion in revenue, up 11 percent from the same prior year period. The Server & Tools division was helped along by double digit gains for its SQL Server and System Center solutions.
Even with Windows 8 slow to gain mass adoption the company posted a 23 percent year-over-year same period adjustment to reach $5.70 billion.
Microsoft’s Online Services, in the meantime, reported $832 million, an 18 percent increase over the same period in 2012.
Also increasing with double digit returns was the company’s Online advertising division, which increased revenue by 22 percent.
Thanks to the power of its Xbox Live system, the company’s Entertainment and Devices division posted a revenue increase of 56 from the same period in 2012. Xbox Live now services more than 46 million members. Revenue was up to $2.53 billion. The number of Xbox Live users increased by 18 percent. Microsoft has worked hard to draw in Live users while at the same time increasing revenues through new content partnerships.
Along with its earnings call announcements, Microsoft revealed that Chief Financial Officer Peter Klein will be leaving the tech firm at the end of the current fiscal year. Microsoft has not yet named Klein’s eventual predecessor.
Speaking about Klein’s departure, Microsoft CEO Steve Ballmer said “He’s been a key member of my leadership team and a strategic advisor to me, and I wish him the very best.”
Are you surprised by Microsoft’s ability to stay ahead of market expectations during a period of PC and Notebook sales declines?
