Also witnesses strong growth in Bing search and cloud services
Microsoft has reported revenue of $14.5bn in the third quarter ended March 31, 2009, an increase of 6%, compared to $13.6bn in the same period last year.
The company posted an operating income of $5.17bn, up 17% compared to $4.43bn in the same period last year. For the quarter ended March 31, 2009, the company posted a net income of $4.01bn, up 35% compared to $2.97bn in the same period a year ago. Diluted earnings per share increased 36% to $0.45.
The results include the deferral of $305m of revenue relating to the Microsoft Office 2010 Technology Guarantee program. Adjusting for the revenue deferral, third-quarter revenue totaled $14.81bn, an increase of 8% over the prior year period. Windows revenue was up 28%, compared to the same quarter a year earlier, driven by strong demand for Windows 7.
Revenue from Windows & Windows Live division increased to $4.42bn from $3.45bn, while revenue from Server and Tools segment was $3.58bn, compared to $3.39bn in the same period last year. Microsoft Business division revenue was down to $4.24bn from $4.51bn, while Online Services division, which includes the Bing search engine, was up to $566m from $507m. Entertainment and Devices division revenue was up to $1.67bn from $1.63bn.
Peter Klein, chief financial officer of Microsoft, said: “Windows 7 continues to be a growth engine, but we also saw strong growth in other areas like Bing search, Xbox LIVE and our emerging cloud services. Our record third-quarter revenue along with continued rigor on cost management resulted in exceptional EPS growth.”
Kevin Turner, chief operating officer at Microsoft, said: “Business customers are beginning to refresh their desktops and the momentum of Windows 7 continues to be strong. We are also seeing tremendous interest in our market-leading cloud services for business.”
The company offers operating expense guidance of $26.1bn to 26.3bn, for the full year ending June 30, 2010.