Microsoft reports record earnings of $19.95bn in second quarter

Microsoft Corp. today announced a record second quarter revenue of $19.95 billion. Last year's second quarter earning provided the company with $19.02 billion in earnings.

Microsoft's second quarter operating income totaled $8.17 billion, with $6.63 billion net income, with a diluted earnings per share of $0.77, respectively. The company finished with a 5% increase over last years revenue, and a 4% decrease in operating income, and a 4% increase in diluted earnings per share, compared to this time last year.

“We are enthusiastic about the consumer response to our holiday lineup of products, including the launch of Kinect. The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations,” said Peter Klein, chief financial officer at Microsoft. “The pace of business spending, combined with strong consumer demand, led to another quarter of operating margin expansion and solid earnings per share growth.”

Among the other product and business highlights Microsoft reported in the quarter:

  • Microsoft announced it has now sold over 300 million Windows 7 licenses, and Windows 7 is now running on over 20% of Internet-connected PCs.

  • Windows Phone 7 launched during the quarter in 30 countries and on 60 operators and nine different devices. Microsoft announced developers are adding Windows Phone 7 applications to the marketplace at a rate of over 100 per day.

  • Bing completed the integration of Yahoo! search in the U.S. and Canada and continues to gain share.

  • Windows Azure developer momentum continued this quarter, with Pixar Animation Studios, ADP with NVoicePay and others demonstrating compelling uses of the platform.

  • Internet Explorer 9 is Microsoft's fastest downloaded beta browser of all time with over 20 million downloads to date.

  • At International CES 2011 in early January, Microsoft announced that the next version of Windows will support System on a Chip architectures.

  • The company announced that during the quarter, it bought back $5 billion in stock and declared $1.3 billion in dividends.

Microsoft reported that their business division revenue grew 24% year-over-year. Microsoft also announced that Office 2010 is the fastest selling version in history, with license sales over 50% ahead of Office 2007, in the equivalent time period since their launch.

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39 Comments

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that's my money hard at work. thanks MSFT, i love ya...thanks for making Kinect such a huge hit at the expense of frakin Gears 3!

Only record breaking earnings of $19.95 Billion. Microsoft is dying, they should just shut down and give all their money and resources to Apple, they've already lost.

Benjy91 said,
Only record breaking earnings of $19.95 Billion. Microsoft is dying, they should just shut down and give all their money and resources to Apple, they've already lost.
??? Bad attempt at sarcasm?

Kirkburn said,
??? Bad attempt at sarcasm?

Yup ;-)

Also hang around MacRumors whenever an article about Microsoft gets posted, you will see comments like that, that arent even sarcastic xD

Good for Microsoft. They released some really incredible products this year, so it's well deserved. Their Product Development has been very impressive. Kinect, Windows 7, Office 2010, Windows Phone 7, now Surface 2... Great product releases. I hope they continue this trend.

it says they bought back $5 billion in stock. Anybody knows how much stock they still have outstanding? Also how much reserve cash do they still have laying around?

According to Nasdaq.com, there are 8,555,523,000 shares outstanding. According to Yahoo, at the end of Sept 2010, they had 43.25B on hand.

GP007 said,
Man, I was close. Yesterday I was guessing they would post $20 billion.

Well, you were wrong . Being 0.05 billion off doesn't sound like much to me... well, until I realize how many of my pay checks would fit into 50,000,000.

Shadrack said,

Well, you were wrong . Being 0.05 billion off doesn't sound like much to me... well, until I realize how many of my pay checks would fit into 50,000,000.

Ya but take into account that wall street was expecting something like $19.2b and it puts things into perspective.

still1 said,
Good for Microsoft... Windows 7 and Xbox 360 have played a major part.
Office was also a huge success

Actually Microsoft make most of their money ca. 65% from their Business division (Office, Project, Visio, Exchange Server, Dynamics) and Server and Tools division (Windows Server, Microsoft SQL Server, Visual Studio).

TechJunkie81 said,

and have ppl claim said company is dying

LOL whoever said Microsoft was dying must have had their head stuck in the sand. I'm pretty sure the major players like Apple and Microsoft, Sony etc will be around till the end of time! (aka end of next year when the aliens come to harvest our brains for the great collection dish of Xenu)

Ently said,

LOL whoever said Microsoft was dying must have had their head stuck in the sand. I'm pretty sure the major players like Apple and Microsoft, Sony etc will be around till the end of time! (aka end of next year when the aliens come to harvest our brains for the great collection dish of Xenu)

People said the same thing about the likes of AOL - now look at them (still exist, but not the behemoth they used to be).
Anyhoo, Microsoft isn't going anywhere any time soon, they have too many fingers in too many pies for that, but their biggest earners (office and Windows) are probably likely to see a decline down the road, now that people are slowly moving to smartphones and tablets, unless Windows 8 is pretty special.

Ently said,

LOL whoever said Microsoft was dying must have had their head stuck in the sand. I'm pretty sure the major players like Apple and Microsoft, Sony etc will be around till the end of time! (aka end of next year when the aliens come to harvest our brains for the great collection dish of Xenu)

Someone's been watching Skyline.

Ently said,

LOL whoever said Microsoft was dying must have had their head stuck in the sand. I'm pretty sure the major players like Apple and Microsoft, Sony etc will be around till the end of time! (aka end of next year when the aliens come to harvest our brains for the great collection dish of Xenu)

just a joke for the zealots out there is all