Microsoft’s earnings report, revenue and net earnings miss targets

Microsoft’s earnings report, revenue and net earnings miss targets
For their fiscal first quarter of 2012, Microsoft reported earnings and revenue in the black, but short of expectations. Despite that, the company’s stock was barely dented, closing only $0.09 (0.32%) down for the day.

Net income came in at $4.47 billion (53 cents per share) versus $5.74 billion (68 cents per share) for the same period last year, a decrease of roughly 22%. Overall revenue was off 8% at $16.01 billion compared to $17.37 billion a year ago. Expectations were set lower than last year’s earnings, but analysts were targeting $16.42 billion in revenue.

Windows revenue (Windows and Windows Live) was down sharply, posted revenue was $3.24 billion which was a 33% dive compared to last year. All was not gloomy however, the Server and Tools business unit reported an 8% increase and $4.55 billion in revenue. The Server and Tools business encompasses SQL Server and System Center products which are riding on the recently released Windows Server 2012.

What is the culprit for the sluggish performance elsewhere? Slow PC sales. Microsoft hopes to remedy that issue with its introduction of Windows 8, the Slate tablet, and by extension, delivering a unified experience via Windows Phone 8. Both platforms will be unveiled later this month and that is probably why the company’s stock has not taken too much of a hit with the news.

The Windows 8 release is more than just another release of the ubiquitous operating system, it is a point of transformation for Microsoft who will emerge as a software, hardware and integrated services company.

source: Yahoo! Finance, The Next Web, and Microsoft

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14 Comments

1. theBankRobber

Posts: 682; Member since: Sep 22, 2011

Well at least they are still getting money from android OEM's, they have something to fall back on since Windows products aren't doing much lol.

3. TROLL

Posts: 4851; Member since: Apr 13, 2012

They never did well....and believe they never will.

7. zippolite28

Posts: 107; Member since: Sep 28, 2012

Troll I guess u never commented well. ... :-P

2. AnTuTu

Posts: 1592; Member since: Oct 14, 2012

No worries we will achieve our targets with our new products.

5. phil2n

Posts: 519; Member since: Apr 30, 2012

(sigh). troll

8. JunkCreek

Posts: 407; Member since: Jul 13, 2012

too fast. they're so hurry launched windows 8, windows 7 still in use and they want everybody to migrate to new OS? windows xp is fine from 99, millenium untill 2005 when vista released and become AS BUGY AS WINDOWS 95 AND WINDOWS XP MILLENIUM/2000, no WINDOWS VISTA IS MORE BUGY. thanks to windows 7 to give our trust back, but not again with windows 8.

14. downphoenix

Posts: 3165; Member since: Jun 19, 2010

actually Vista is very stable, it just wasnt initially. It did have problems initially. Unlike ME though, Microsoft made good on its promises to fix it. Vista fully updated is almost like having 7, 7 just had some more features and is a little bit faster, not worthwhile enough to upgrade from Vista to 7 unless you're a PC gamer and need DX11.

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