Microsoft: $24.52 billion in revenue, $6.56 billion in net income for fiscal Q2 2014

Microsoft has announced that for the fourth calendar quarter of 2013 (which is considered the second quarter of 2014 in Microsoft's fiscal year) the company generated $24.52 billion in revenues, along with $6.56 billion in net income. This compares to $21.46 billion in revenues and $6.38 billion in net income from the same period a year ago. Both the revenue and income numbers were ahead of expectations from financial analysts.

Microsoft said that revenues from its Devices and Consumer division went up 13 percent to $11.91 billion for the quarter. Windows OEM Pro revenue was up 12 percent but was offset by what the company called "continued softness in the consumer PC market." On the plus side, revenues from its Surface family of tablets went up to $893 million for the quarter, compared to $400 million for the previous quarter. Bing search share is now at 18.2 percent, according to Microsoft, and its search advertising revenue went up 34 percent.

Commercial revenue grew 10 percent to $12.67 billion, and Microsoft said that SQL Server and System Center had "double digit growth". Revenues from Microsoft's commercial cloud services more than doubled for the quarter and Office 365 commercial seats and Azure customer each experienced triple digit growth.

On the Xbox side of the sales chart, Microsoft sold 7.4 million Xbox console units into the retail channel, including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.

Microsoft will likely expand on the information in today's financial results at 5:30 pm ET when it holds its quarterly conference call with analysts.

Source: Microsoft | Image via Microsoft

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Microsoft make shed loads of money! Tell me something i didn`t know, the company is practically ran by bean counters...

Now this is just the start. Windows phone and Windows 8 had gliches which they are going to fix. now they know what is the toy and what is real ****.

but ...but...but...but I thought msft was doomed and that nobody wants windows phone or windows 8 tablets... they must of stole it !! /s

Actually businesses and consumers know what they are doing. It's the reason Microsoft is singing a different tune these days. We should never allow a company like Microsoft to choose what's right for our particular life. Failed product launches happen when you are to smart for your own good.

JHBrown said,
Actually businesses and consumers know what they are doing. It's the reason Microsoft is singing a different tune these days. We should never allow a company like Microsoft to choose what's right for our particular life. Failed product launches happen when you are to smart for your own good.

Yes, they definitely know what they are doing, and it definitely isn't the likes of Linux or Mac.

I'm willing to bet my life that if Linux had the same kind of hardware and software support, we would have the type of race that we currently see in the smartphone sector. As it stands now, Microsoft is their own competition.

JHBrown said,
I'm willing to bet my life that if Linux had the same kind of hardware and software support, we would have the type of race that we currently see in the smartphone sector. As it stands now, Microsoft is their own competition.

But it is open source. There are millions of people waiting to write the software, drivers, etc. for the 100s of millions of people who cannot code, but are tripping over themselves to make sure it is the year of Linux. And those drivers will be of better quality, written faster, without any backdoors planted by evil, money grubbing corporations who want to compromise our security and then our privacy by using our data for their personal enjoyment as well as to rat us out to groups like the NSA.

Imagine how much higher Surface 2 / Pro 2 Revenue would have been if they are to keep it in stock during the holidays. Clearly sales has more than doubled the 1st Gen Surface sales.

Imagine how much higher Surface 2 / Pro 2 Revenue would have been if they are to keep it in stock during the holidays. Clearly sales has more than doubled the 1st Gen Surface sales.

It seems that part of the issue was Intel and not being able to source the original S2P processor, hence the modest spec bump of the newer revision.

Despite an atrocious new operating system, Microsoft is doing quite well. Good thing they have other revenue sources to keep them afloat while they fix what many would consider the worse operating system coming out of Redmond in decades. If Microsoft would not have screw up Windows, their revenue would have been much higher. With a new CEO incoming and Balmer completely out of sight, Microsoft has a nice future.

I'm not here to argue fellow member. My personal opinion is shared by millions. I want Microsoft to succeed. I will call it like I see it. If you've been living under a rock for the past two years, I'm here to tell you that Windows 8 has been a thorn in Microsoft's backside. It is what it is, and with the changes I see, Microsoft is attempting to fix the mess they've created. Kudos to them.

JHBrown said,
I'm here to tell you that Windows 8 has been a thorn in Microsoft's backside. It is what it is, and with the changes I see, Microsoft is attempting to fix the mess they've created. Kudos to them.

Right. The same Windows 8 that was sold with nearly a $1Billion worth of Surfaces.

JHBrown said,
I'm not here to argue fellow member. My personal opinion is shared by millions. I want Microsoft to succeed. I will call it like I see it. If you've been living under a rock for the past two years, I'm here to tell you that Windows 8 has been a thorn in Microsoft's backside. It is what it is, and with the changes I see, Microsoft is attempting to fix the mess they've created. Kudos to them.

Just as I'm sure there are millions more who don't whine about every little thing and instead learn to live with it.

JHBrown said,
I'm not here to argue fellow member. My personal opinion is shared by millions. I want Microsoft to succeed. I will call it like I see it. If you've been living under a rock for the past two years, I'm here to tell you that Windows 8 has been a thorn in Microsoft's backside. It is what it is, and with the changes I see, Microsoft is attempting to fix the mess they've created. Kudos to them.

No, I get it. You are more or less sticking your fingers in your ears and yelling "Mac and Linux users hate Win8" as loud as you can so you can ignore the facts.

I can show you evidence to the contrary, but then again, you refuse to hear it because you are "not here to argue". It is your way or no way, and if anyone disagrees with you, then you go back to that fingers in the ears and yelling thing.

WhatTheSchmidt said,

No, I get it. You are more or less sticking your fingers in your ears and yelling "Mac and Linux users hate Win8

Actually more Windows users hate Windows 8. This has nothing to do with Mac or Linux. I've been a Windows user for over 20 years and I am one of those loyal Windows users who shook their heads in disbelief at the approach Microsoft took with their new OS.

JHBrown said,
Actually more Windows users hate Windows 8. This has nothing to do with Mac or Linux. I've been a Windows user for over 20 years and I am one of those loyal Windows users who shook their heads in disbelief at the approach Microsoft took with their new OS.

You have said it is so, and so it is. You dislike it and therefore everyone dislikes it. Case closed, because your personal opinion is the opinion of all. Those 100s of millions of copies sold mean nothing, because you have said so.

WhatTheSchmidt said,

You have said it is so, and so it is. You dislike it and therefore everyone dislikes it. Case closed, because your personal opinion is the opinion of all. Those 100s of millions of copies sold mean nothing, because you have said so.

It was not 100 million actual copies sold.

Every time there is change 70% of the population will hate it. Until they are forced to use it for long enough to get over the ways there were doing things and do things in a new way. Working in the IT industry will show people this. Deploying new applications, upgrading versions of windows/office, changing from thick to thin clients, moving to a centralized storage environment. Every time, most people bitch and complain for months and months until they realize that their bitching and complaining wont change anything, Then they learn that the new way is either the same or better. Every single project I do is the same. It has nothing to do with the product or how good it is. It is change that people hate, and as win8 is a big change they will hate it even more. Dont hate them for this its only natural.

JHBrown said,
It was not 100 million actual copies sold.

I almost forgot, the Win8 haters decided that there were 100s of millions of boxed copies of Win8 and computers with Win8 installed were sitting on store shelves gathering dust, because they didn't like it, and their personal opinions translated to everyone.

JHBrown said,
Despite an atrocious new operating system, Microsoft is doing quite well. Good thing they have other revenue sources to keep them afloat while they fix what many would consider the worse operating system coming out of Redmond in decades. If Microsoft would not have screw up Windows, their revenue would have been much higher. With a new CEO incoming and Balmer completely out of sight, Microsoft has a nice future.

Most of the things you are calling 'other revenue sources' are also running Windows 8. From Windows Server and Azure NT to WP8 to XB1 to Surface sales - Windows 8 OS.

It is your opinion that you don't like Windows 8, it is NOT your opinion when you call it an atrocious OS. Fundamentally it is the most advanced OS technology currently in existence.

As for the 'millions' like you that don't like, 99.9% of them haven't used it and wouldn't consider using Windows anyway.

While you are installing your 3rd party (Vista) Start Menu, remember that people once truly hated Vista far more than they do Windows 8. Strange the same luddites are the first to 'fix' Windows 8 by installing the Vista Start Menu.

Also if you look back, the main difference between Windows 7 and Vista that made Windows 7 successful, was the version number change, the rest of the changes were fairly tiny for 99% of the users.

IsItPluggedIn said,
Every time there is change 70% of the population will hate it. Until they are forced to use it for long enough to get over the ways there were doing things and do things in a new way. Working in the IT industry will show people this. Deploying new applications, upgrading versions of windows/office, changing from thick to thin clients, moving to a centralized storage environment. Every time, most people bitch and complain for months and months until they realize that their bitching and complaining wont change anything, Then they learn that the new way is either the same or better. Every single project I do is the same. It has nothing to do with the product or how good it is. It is change that people hate, and as win8 is a big change they will hate it even more. Dont hate them for this its only natural.

This times 1 million.

Mobius Enigma said,

While you are installing your 3rd party (Vista) Start Menu, remember that people once truly hated Vista far more than they do Windows 8. Strange the same luddites are the first to 'fix' Windows 8 by installing the Vista Start Menu.

lol, there are people who still want XP themes and menus as well in Windows 8. Ludicrous.

According to CNBC, Microsoft sold 3.9 million Xbox One! They decline to release of Surface & Surface 2 details. PC is down by 3%, while OEM is little dip.

Perhaps the OP wasn't but I was thinking he was looking for actual sales figures in terms of units, not revenue which doesn't say as much. The figures for units moved for the SF,SF-RT, SF2, and SF2Pro would be more helpful.

knighthawk said,
Perhaps the OP wasn't but I was thinking he was looking for actual sales figures in terms of units, not revenue which doesn't say as much. The figures for units moved for the SF,SF-RT, SF2, and SF2Pro would be more helpful.

I'm sure everyone wants to know surface unit sales but whatever the number is I can bet you two things. One: it's not close to the iPad numbers so that will be used as a negative to hit them with. Two: the numbers are probably better than other PC OEMs in the same category so it'll make them look bad and strain the partnerships in place.

As long as revenues are growing for the surface that's the important thing, and if the revenues keep going up into the billions then even better, odds are they're making a good profit on each looking at their prices.

Devices and Consumer revenue grew 13% to $11.91 billion.

· Windows OEM revenue declined 3%, reflecting strong 12% growth in Windows OEM Pro revenue, offset by continued softness in the consumer PC market.

· Surface revenue more than doubled sequentially, from $400 million in the first quarter to $893 million in the second quarter.

· The company sold 7.4 million Xbox console units into the retail channel, including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.

· Bing search share grew to 18.2% and search advertising revenue grew 34%.


People obviously "hate" Metro.
/s

Perhaps the "softness" of the PC market is due to people not wanting 8, and hence not buying PCs. Anybody that absolutely has to buy as new PC is basically forced to use 8.

The slow increase in market share speaks for itself...

Astra.Xtreme said,
Perhaps the "softness" of the PC market is due to people not wanting 8, and hence not buying PCs. Anybody that absolutely has to buy as new PC is basically forced to use 8.

The slow increase in market share speaks for itself...

It could be. It could also be heavily influenced by the fact that people are keeping their computers longer and not refreshing them as often.

Astra.Xtreme said,
Perhaps the "softness" of the PC market is due to people not wanting 8, and hence not buying PCs. Anybody that absolutely has to buy as new PC is basically forced to use 8.

The slow increase in market share speaks for itself...

So Win 8 is responsible for the slow PC market even before it's release? Sales have been slow for a few years now. Are there any numbers that show things got worse after 8?

Dot Matrix said,
Where are they forced? Ed Bott just debunked that claim two days ago.

There's the downgrade rights too if you're eligible.

Scabrat said,

It could be. It could also be heavily influenced by the fact that people are keeping their computers longer and not refreshing them as often.

Sure, it could be all sorts of things. My thought is that since XP is end-of-life soon, people will eventually get smart enough to upgrade. And since doing an OS upgrade is above most peoples' heads, they may just resort to buying new PCs. In which case they'll be faced with something completely foreign that they can't figure out, and then proceed to return it. Of course that's just speculation, just like every other idea out there.

New PCs are so cheap now days, that I can't imagine it would hinder people from buying them. When the battery on a laptop is completely dead, you can damn near buy a whole new laptop for the same price as the OEM battery replacement.

Dot Matrix said,

Where are they forced? Ed Bott just debunked that claim two days ago.

http://www.zdnet.com/where-can...nning-windows-7-7000025408/

I never said you can't find Win7 PCs anymore... Your article is out of context...

Go into a retail store that sells PCs. What are 90% or more of them running? 8...
Buy a PC on Newegg, Amazon, Tigerdirect. What will you get on most of them (unless it's an old model)? 8...

And have you tried downgrading a PC with 8? Without messing with the bios/uefi and/or pulling out the HDD, good luck... Could the average user do it? Absolutely not. I've downgraded quite a few laptops, and it's not a pleasant experience. Not to mention driver issues.

windows 7 demand is down. is it because of metro? did metro cause people to replace desktop pcs with tablets which are 100% incompatible with all their apps, don't have a start menu, and also run everything full screen?

sir, your same old tale can only go so far.

Astra.Xtreme said,

I never said you can't find Win7 PCs anymore... Your article is out of context...

Go into a retail store that sells PCs. What are 90% or more of them running? 8...
Buy a PC on Newegg, Amazon, Tigerdirect. What will you get on most of them (unless it's an old model)? 8...

And have you tried downgrading a PC with 8? Without messing with the bios/uefi and/or pulling out the HDD, good luck... Could the average user do it? Absolutely not. I've downgraded quite a few laptops, and it's not a pleasant experience. Not to mention driver issues.

And? Do you see them selling last year's phones? Tablets? How about any other retail outlet... Do you see them at all selling last year's trends?

Astra.Xtreme said,
Perhaps the "softness" of the PC market is due to people not wanting 8, and hence not buying PCs. Anybody that absolutely has to buy as new PC is basically forced to use 8.

The slow increase in market share speaks for itself...

The PC market has been shrinking for years. Basically since the rise of smartphones and tablets. Its clear most consumers prefer touch and mobility. Windows 8 is what Microsoft needs to compete in the future. Although I agree Microsoft was wrong to force a touch interface on desktop/non-touch users.

Most consumers prefer touch? I'd love to see some proof of that.
Sure as hell not in the business world. Touch is great for people that travel, but that's a very tiny percentage of the population.

Dot Matrix said,

And? Do you see them selling last year's phones? Tablets? How about any other retail outlet... Do you see them at all selling last year's trends?

Um.... seeing as there are a lot of outdated CPUs and GPUs in a big chunk of those PCs, I would say yes...

Are you too lazy to actually look for yourself, or are you that convinced that you're right?

Astra.Xtreme said,
Most consumers prefer touch? I'd love to see some proof of that.
Sure as hell not in the business world. Touch is great for people that travel, but that's a very tiny percentage of the population.

The healthy sales of Android devices and iPads certainly suggests it. Although in my case if the environment I'm using my Surface in permits it, I still prefer to use the keyboard cover with touchpad. And I have no need of a touchscreen on my tower or laptop computers, but prefer Windows 8. To me it's not a "touchscreen interface".

I built my kick butt desktop five years ago and since then I only upgraded my gaming mouse and graphics card. The i920 is still a great CPU and will last me for many more years. My laptop is also an i7 CPU and will last me for a long time. Last year I bought a Surface Pro for even more portability. My phablet Lumia 1520 is great too. I have no reason to upgrade for a long time. If others are in my shoes they are not buying a PC anytime soon. However, those with a crappy PC may upgrade but they probably will get a tablet instead. Tablets fullfill the needs of non-power users.

DConnell said,

The healthy sales of Android devices and iPads certainly suggests it. Although in my case if the environment I'm using my Surface in permits it, I still prefer to use the keyboard cover with touchpad. And I have no need of a touchscreen on my tower or laptop computers, but prefer Windows 8. To me it's not a "touchscreen interface".

Very true, but they aren't exactly replacing traditional PCs. Tablets are really cheap (especially the Nexus 7), and it's a great alternative to traveling with a heavy laptop. I bought one for just that reason, but it's still incredibly limited compared to what my PCs can do. Regardless, that's getting a little off topic.

Max Norris said,
I totally blame Windows 8 and WP on Microsoft losing money... wait what?

LOL! Best comment I have ever read on Neowin. Maybe the internet =).

Leopard Seal said,
Microsoft is doomed

Lol, I was going to say that as well =). Sooo doomed... And for those who dont know it, here is a /s to clear things up =).

It is the year of Linux.
Apple doesn't care about selling Macs.
Microsoft is doomed.

The problem is, when they say these things they actually believe it.