Microsoft Posts Record Quarterly Sales, But Profits Fall 28%

Microsoft said net income for its fiscal second quarter (three months ending December 31) fell 28% to $2.63 billion as delays in shipping Windows Vista pushed some profits and revenue to the third quarter. The software giant had originally planned to ship its new operating system prior to the 2006 holiday season. The company still managed to increase sales 6% year-over-year to a quarterly record of $12.54 billion. Microsoft credited last year's introductions, which have contributed $1 billion in revenue growth, to the Xbox 360 gaming system, Microsoft SQL Server 2005, Visual Studio 2005, and Dynamics CRM 3.0 customer relationship management software, for its strong sales performance. With $0.11 in earnings per share deferred to the third quarter, Microsoft posted second quarter EPS of $0.26, a decline of 24% year over year.

News source: InformationWeek

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