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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Frylock86 said,
I thought everyone was replacing their PCs with iPads? Or so the trolls claim....

Check how much a $50,000 invested in MS shares in 2000 would be worth today and then compare what would be worth the same amount invested in Apple shares.
Btw I bought MS not Apple............

Fritzly said,

Check how much a $50,000 invested in MS shares in 2000 would be worth today and then compare what would be worth the same amount invested in Apple shares.
Btw I bought MS not Apple............


That's because MS was thoroughly dominating the industry back in 2000. Apple....not so much.

lordcanti86 said,

That's because MS was thoroughly dominating the industry back in 2000. Apple....not so much.

Mind to elaborate what do you mean? in the year 2000 148 millions of PCs were shipped; in 2010 351 milions.....

Fritzly said,

Check how much a $50,000 invested in MS shares in 2000 would be worth today and then compare what would be worth the same amount invested in Apple shares.
Btw I bought MS not Apple............

umm.. Apple was created 7 years before Microsoft.. they had a 7 year headstart.. haha.

Lachlan said,

umm.. Apple was created 7 years before Microsoft.. they had a 7 year headstart.. haha.

Maybe you should check what I wrote: from 2000 till now.

You might also want to check your statement: Microsoft was established in 1975, Apple in 1976.

Fritzly said,

Maybe you should check what I wrote: from 2000 till now.

You might also want to check your statement: Microsoft was established in 1975, Apple in 1976.

lol.. i was just joking hence the "haha" , and sorry my mistake I was going off of the date of public offering on the stock market not the founded date. Also, Microsoft has given 27 dividends since 2000 so dont forget about that when you are counting your yield to date.

Lachlan said,

umm.. Apple was created 7 years before Microsoft.. they had a 7 year headstart.. haha.


Thanks to Microsoft, Apple still exists. I recall years ago Microsoft invested a ******** of money into Apple.

Frylock86 said,
I thought everyone was replacing their PCs with iPads? Or so the trolls claim....

The only people stating that were Linux fanboys trying to push their Android wares onto people in a vein attempt of believing that this will be the day they'll get linux into the hands of ordinary folks - for everyone else concerned the idea of the iPad/Tablets are as complimentary devices in much the same way that laptops haven't replaced desktops and desktops haven't replaced workstations and servers haven't replaced mid-frames and mid-frames haven't replaced mainframes.

Mr Nom Nom's said,
The only people stating that were Linux fanboys trying to push their Android wares onto people in a blahblahblah....
Linux/Android fanboys are a fans of the iPad? News to me.

Stop looking for excuses for ranting.

Frylock86 said,
I thought everyone was replacing their PCs with iPads? Or so the trolls claim....

hahahahah.....nice joke. Not everyone, only those person who know "Computer means a device which is used for listening to music and watching and internet means facebook.com & ebay.com" they don't even Google! OH!

Kirkburn said,
Linux/Android fanboys are a fans of the iPad? News to me.

Stop looking for excuses for ranting.

iPad has become a generic name in reference to slates/touchpads in the same way that some use ipod as interchangeable with media player/mp3 player. Read my comment again and please, this time, put some effort into actually reading AND comprehending.

Mr Nom Nom's said,
iPad has become a generic name in reference to slates/touchpads in the same way that some use ipod as interchangeable with media player/mp3 player. Read my comment again and please, this time, put some effort into actually reading AND comprehending.
Since your entire comment rests on the basis that iPad is now a generic name for a tablet/slate/touchpad (it's not), no. It's only vaguely accurate for iPods as it is. You're just ranting. Who brought Linux, Android and fanboys into the conversation? You did.

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.

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.

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

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!

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