Microsoft brings in $16.01 billion in revenue for Q3 2012

Microsoft revealed its Q3 (calendar year) 2012 financial numbers today, announcing that the company had revenues of $16.01 billion for the quarter than ended on September 30th. That's actually a bit lower than estimates from financial analysts, who predicted the company would bring in $16.42 billion in revenues for the quarter.

The company said it had a net income of $4.47 billion for the quarter along with earnings of $0.53 per share. Microsoft said in its press release that its numbers accounted for the deferral of $1.36 billion in revenue and $0.13 of diluted earnings per share. The company said those numbers were ".... due to the Windows Upgrade Offer, pre-sales of Windows 8 to OEMs prior to general availability, and the Office Offer."

Peter Klein, the chief financial officer at Microsoft, admitted in the press release, "While enterprise revenue continued to grow and we managed our expenses, the slowdown in PC demand ahead of the Windows 8 launch resulted in a decline in operating income. Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and Microsoft Business Division products as businesses commit to our technology roadmap."

The press release included a statement from Microsoft CEO Steve Ballmer who said, "The launch of Windows 8 is the beginning of a new era at Microsoft. Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”  

The Windows and Windows Live division generated revenues of $3.24 billion for the quarter, down a whopping 33 percent from the same period a year ago. The Online Services Division had revenues of $697 million for the quarter, up nine percent compared to a year ago.

Microsoft's Server and Tools division had revenues $4.55 billion for the quarter, up eight percent compared to a year ago. Microsoft's Business section generated revenues of $5.50 billion for the quarter, down two percent compared to a year ago. The Entertainment and Devices section had revenues of $1.95 billion for the quarter, down one percent from a year ago.

The company will hold a financial conference call with analysts at 5:30 pm Eastern Time today.

Source: Microsoft press release | Image via Microsoft

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26 Comments

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calimike said,
@CNNMoney tweeted "Microsoft reports quarterly sales of $17.3 billion, topping analyst expectations but flat with last year's revenue." http://cnnmon.ie/bkgnews

@BreakingNews tweeted "Microsoft quarterly earnings down 22% with reported $4.47 billion in profit on $16 billion revenue" - @MarketWatch http://on.mktw.net/UaAnvl


The 17 bil figure "Those results include $1.4 billion in early Windows 8 sales that the company has chosen to defer until next quarter."

aviator189 said,

The 17 bil figure "Those results include $1.4 billion in early Windows 8 sales that the company has chosen to defer until next quarter."

Almost.

Those are sales of Windows 7, not 8. Some of it is deferred until next quarter, true, but the rest will be deferred into the third quarter of fiscal 2013.

In particular, the deferred revenue from any coupons that are not redeemed will show up on February 28, 2013, when the offer expires. February is in Microsoft's 3rd quarter.

ahhell said,
"That's actually a bit lower than estimates from financial analysts"
Holy crap.

Analysts were predicting $0.56/share. However, it is not certain if that includes deferred profits because of upgrades of Win8/Office. If it did not include the $0.13, then they actually brought in 24.5% more than expected. Because of accounting rules, they cannot declare them now, they need to declare them when Win8 actually ships.

But that $0.13 actually is a good sign, it means that there are already many preorder and upgrades of Win8/Office sold, enough to account for 25% of last quarter's profits already made for the current quarter, in only 18 days.

I would say that this coming up Quarter will be a little rocky unfortunately. I will blame it on OEM's who are weary about what Windows 8 has to offer to the world of consumers.

All that money this company makes and the best they can do is come up with Windows 8 Desktop/Tablet/Phone Edition?

JHBrown said,
All that money this company makes and the best they can do is come up with Windows 8 Desktop/Tablet/Phone Edition?

just proves that you know better /s

morden said,

just proves that you know better /s

Windows 8 is a water cooler topic! I am employed by the biggest employer in the U.S. , United States Air Force(our government). I work in Comm, and 9 out of 10 people I work with and know off base, absolutely hates Windows 8. Don't kill the messenger! Outside of these forums, Windows 8 stinks! They could have used a little more money in R&D!

JHBrown said,
Windows 8 is a water cooler topic! I am employed by the biggest employer in the U.S. , United States Air Force(our government). I work in Comm, and 9 out of 10 people I work with and know off base, absolutely hates Windows 8. Don't kill the messenger! Outside of these forums, Windows 8 stinks! They could have used a little more money in R&D!

i can state a stat of my own: 8 out of 10 people i showed Win8 liked it (ladies often said 'cute') - it bears approximately the same relevance as yours; sales will tell

anyways it can well be said that you hate it (hell, i think osx looks ugly and ios boring but never would say that they stink) but project it to the whole market thats a bit brave

JHBrown said,
Windows 8 is a water cooler topic! I am employed by the biggest employer in the U.S. , United States Air Force(our government). I work in Comm, and 9 out of 10 people I work with and know off base, absolutely hates Windows 8. Don't kill the messenger! Outside of these forums, Windows 8 stinks! They could have used a little more money in R&D!

Wait till the first native Windows 8 program appears for your line of work, and then come back again. How can you absolutely hate Win8 if, when in desktop mode (like what you are currently using), everything is nearly identical but 10% faster. if you said that they hate the start screen, I would understand. But once all your work is represented in updatable live-tiles in the start screen (mail, chats, and other notifications), you will wonder why no one came up with the idea in the first place.

vhaakmat said,

Wait till the first native Windows 8 program appears for your line of work, and then come back again. How can you absolutely hate Win8 if, when in desktop mode (like what you are currently using), everything is nearly identical but 10% faster. if you said that they hate the start screen, I would understand. But once all your work is represented in updatable live-tiles in the start screen (mail, chats, and other notifications), you will wonder why no one came up with the idea in the first place.

I was thinking the same way that he did, but now I am convinced that they have a long term plan for this admittedly not popular windows.

JHBrown said,
All that money this company makes and the best they can do is come up with Windows 8 Desktop/Tablet/Phone Edition?

Yo STFU with this garbage. Any news with MS in it causes all the aholes to come out from their holes and converge.

morden said,

i can state a stat of my own: 8 out of 10 people i showed Win8 liked it (ladies often said 'cute') - it bears approximately the same relevance as yours; sales will tell

anyways it can well be said that you hate it (hell, i think osx looks ugly and ios boring but never would say that they stink) but project it to the whole market thats a bit brave


I agree with you! Sales will tell the story! The only problem is that Microsoft combines sales of new computers with sales of people who actually like the product and upgrade. If my parents went into Best Buy with no option besides Windows 8, of course they would buy the computer and Microsoft will count that as a sale. If they had a Windows 7 PC next to a Windows 8 PC, they would choose Windows 7 simply because they are old and don't have time to learn something new as they travel a lot since retiring. Windows 7 just works and contrary to what many people here(very small demographic) believe, Microsoft has created another Windows XP in the form of Windows 7.

vhaakmat said,

Wait till the first native Windows 8 program appears for your line of work, and then come back again. How can you absolutely hate Win8 if, when in desktop mode (like what you are currently using), everything is nearly identical but 10% faster. if you said that they hate the start screen, I would understand. But once all your work is represented in updatable live-tiles in the start screen (mail, chats, and other notifications), you will wonder why no one came up with the idea in the first place.

Well I don't hate the product! I am just stating that with all the money they make, they could have produced a more polished product. Windows 8 feels like they slapped Windows Phone 8 in the start up folder, added a few tweaks here and there, then called it a day. I believe Windows 9 is a good time to upgrade. It will no doubt be a more polished OS!

JHBrown said,

I agree with you! Sales will tell the story! The only problem is that Microsoft combines sales of new computers with sales of people who actually like the product and upgrade. If my parents went into Best Buy with no option besides Windows 8, of course they would buy the computer and Microsoft will count that as a sale. If they had a Windows 7 PC next to a Windows 8 PC, they would choose Windows 7 simply because they are old and don't have time to learn something new as they travel a lot since retiring. Windows 7 just works and contrary to what many people here(very small demographic) believe, Microsoft has created another Windows XP in the form of Windows 7.

i may be able to understand that but since there are only 2 little things you need to learn win8 if you want to use it "traditionally" i can't
1. click on the desktop tile
2. win+q for all your apps
okay, plus one, but that is true since vista: use the search, luke!

they learned to use win7 too, i'm sure before that they used xp or stg...

gullygod said,

Yo STFU with this garbage. Any news with MS in it causes all the aholes to come out from their holes and converge.

Calm down buddy! Step away from the computer! How about you come to Vandenburg AFB for some wall to wall counseling! If you don't know what that means, ask a GI! I am stating facts! I deal with thousands of users and hundreds of contractors and the overwhelming majority hate Windows 8, but will be forced to use it if they can't build their own systems or have another family member help them.

morden said,

i may be able to understand that but since there are only 2 little things you need to learn win8 if you want to use it "traditionally" i can't
1. click on the desktop tile
2. win+q for all your apps
okay, plus one, but that is true since vista: use the search, luke!

they learned to use win7 too, i'm sure before that they used xp or stg...

I understand what you are saying, but many "normal" users always ask, "why do I need this upgrade"? It's like me trading in my Shelby 2012, for a 2013 because it has a few more tweaks here and there, but I can get to point A and point B in the same fashion. Windows 8 does not make someone's productivity go up, so what is the need for the Tablet interface? Remember, we are talking about your everyday Joe Blow! What does Windows 8 have that he needs to get away from Windows 7?

JHBrown said,
I understand what you are saying, but many "normal" users always ask, "why do I need this upgrade"? It's like me trading in my Shelby 2012, for a 2013 because it has a few more tweaks here and there, but I can get to point A and point B in the same fashion. Windows 8 does not make someone's productivity go up, so what is the need for the Tablet interface? Remember, we are talking about your everyday Joe Blow! What does Windows 8 have that he needs to get away from Windows 7?

to buy the new shelby is actually a completely independent choice just like buying an upgrade for your existing machine
as for productivity? the under the hood changes concerning hardware usage and security, the new update method, Windows Store (wich is a pretty big help for exactly the people you talk about, this way it's guaranteed he/she won't download some malware-ridden crap found on google), the new gesture-capable touchpads Synaptic wouldn't shut up for almost a year (and yeah, the super-sensitive touchpad with many-many gestures: this is the only thing i see as a big +1 in macs), the other occasional hardware features (like you bought a touch notebook) and of course there are services attached to it (msacc sign-in, cloud storage of personal settings, roaming user option, cross-platform availability of services)

so you see, there are plenty of things Joe Anybody can benefit from Win8 - but to be honest Joe Anybody will ALWAYS complain, if the window frame changes color he can't resize, if the font type changes he can't read, if a menu gets renamed he's lost forever - except he always solves the problem on HIS own level, as he did since first touched a computer

JHBrown said,
I understand what you are saying, but many "normal" users always ask, "why do I need this upgrade"? It's like me trading in my Shelby 2012, for a 2013 because it has a few more tweaks here and there, but I can get to point A and point B in the same fashion. Windows 8 does not make someone's productivity go up, so what is the need for the Tablet interface? Remember, we are talking about your everyday Joe Blow! What does Windows 8 have that he needs to get away from Windows 7?

I think you need to think about who the average joe is. It sounds like you are basing all of these statements on IT professional/contractor based opinions. This is not the average joe opinion. The average joe will look at what's available and more than likely see the majority of functions in windows are easier and buy the 400$ laptop or a cheap desktop or hybrid tablet thing. Average joe's a lot of the time don't know what version of windows they use. They will see windows that looks different and generally purchases will go with the new option instead of the older one just because that's how it works with people buying computers.

morden said,

to buy the new shelby is actually a completely independent choice just like buying an upgrade for your existing machine
as for productivity? the under the hood changes concerning hardware usage and security, the new update method, Windows Store (wich is a pretty big help for exactly the people you talk about, this way it's guaranteed he/she won't download some malware-ridden crap found on google), the new gesture-capable touchpads Synaptic wouldn't shut up for almost a year (and yeah, the super-sensitive touchpad with many-many gestures: this is the only thing i see as a big +1 in macs), the other occasional hardware features (like you bought a touch notebook) and of course there are services attached to it (msacc sing-in, cloud sotrage of personal settings, roaming user option, cross-platform availability of services)

so you see, there are plenty of things Joe Anybody can benefit from Win8 - but to be honest Joe Anybody will ALWAYS complain, if the window frame changes color he can't resize, if the font type changes he can't read, if a menu gets renamed he's lost forever - except he always solves the problem on HIS own level, as he did since first touched a computer


All points you've made have been noted. Thank you for the intelligent feedback! Sometimes I forget that this site does have "adults" and not pimpled faced high school and college dropouts living in their parents basement.

Brian Burke said,

I think you need to think about who the average joe is. It sounds like you are basing all of these statements on IT professional/contractor based opinions. This is not the average joe opinion. The average joe will look at what's available and more than likely see the majority of functions in windows are easier and buy the 400$ laptop or a cheap desktop or hybrid tablet thing. Average joe's a lot of the time don't know what version of windows they use. They will see windows that looks different and generally purchases will go with the new option instead of the older one just because that's how it works with people buying computers.

Good point! In another one my post I stated that most people would choose Windows 7 over 8 if both were sitting side by side. If Windows 8 is the only choice well then sales will look good for Microsoft. I guess we'll visit this topic in January and see what the public thinks.