Microsoft earns $6.56 billion for its fiscal second quarter; revenue from Surface doubles

Microsoft earns $6.56 billion for its fiscal second quarter; revenue from Surface doubles
Microsoft reported its fiscal second quarter earnings on Thursday, and nary a peep was made about Windows Phone. Microsoft did do some bragging about its Microsoft Surface tablet. For the three month period, sales of the slate more than doubled sequentially, from $400 million in the calendar third quarter to $893 million in the most recent three month period. The launch of the new Microsoft Surface 2, with vastly improved specs, was the key to the huge increase in revenue.

The Devices and Consumer group, which includes the Surface tablets, saw its revenue increase 13% to 11.91 billion. Overall, Microsoft reported a record $24.52 billion in revenue. Profits amounted to $6.56 billion, or 78 cents a share. Wall Street was expecting Microsoft to report earnings of 68 cents a share.

The company is still seeking a new CEO to replace the retiring Steve Ballmer. The search, now into its fifth month, will try to find a leader for Microsoft that can help the company try and close the gap between iOS, Android and Windows Phone.

source: CNBC, Pocketlint

Related phones

Surface 2
  • Display 10.6" 1920 x 1080 pixels
  • Camera 5 MP / 3.5 MP front
  • Processor NVIDIA Tegra 4, Quad-core, 1700 MHz
  • Storage 32 GB



1. papss unregistered

Sure looks like m$ is hurting financially

14. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Not really a good report to say the least. The almost 1 billion in revenue means about 1-2 million surfaces sold in the whole quarter if it was only surface 2 tablets selling. Apple sells that in 3 days on launch I think. Also a good majority of that was probably surface 1 tablets on clearance. The devices division made a nice profit largely on the patent royalties it collects from Android devices as they did during the 900 million surface write down days. No write down this time though but revenues were less than that plus ads so still largely negative. Once again it's MS riding the coat tails of others' success.

18. Dastrix unregistered

Haha, where are those Google fanboys complaining abouot M$ going bankrupt? Serves them right.

4. Tazer2365

Posts: 52; Member since: Jul 28, 2012

The reason the surface's revenue doubled was because the original surface was so cheap, many people headed towards buying those than the new ones. 3 of my friends got one for X-Mas.

5. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Cool, use that money for developing an outstanding Windows 9.

8. papss unregistered

Agreed. I think they will do what needs to be done in order to keep their bread and butter safe. Obviously you either love or hate W8 so its safe to say they need to work on bridging the two groups of folks. It seems that its the cool thing to do to hate m$ but they but they are one of the pioneers of tech and should be respected as such.

9. PBXtech

Posts: 1032; Member since: Oct 21, 2013

W8 has gotta be the single most polarizing thing MS has ever done. For over 20 years people might have complained about certain aspects of Windows, but never have I seen such a split acceptance of it like previous versions. Completely agree, you either love it or hate it, haven't seen any "meh" comments about it. Really looking forward to W9, with either an older feel to it or a new approach that'll make old time users happy. It'll probably be the biggest proirity of the new CEO, whoever that is going to be.

10. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Not bad, but not great. ~$1.2 billion less than Samsung, who saw a decline in profits during the holiday quarter.

11. Taters

Posts: 6474; Member since: Jan 28, 2013

Why? The surface non pro editions suck.

17. papss unregistered

While it wasn't great I believe "suck" is completely wrong and reeks of fanboyism

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