Windows and Xbox help Microsoft earnings beat predictions

Microsoft today confirmed their first quarter results stating that Windows and Xbox exceeded expectations due to strong consumer demand.

Microsoft announced revenue of $12.92 billion for the first quarter ended Sept. 30, 2009, and earnings of 40 cents per share. The earnings are higher than what many financial analysts had anticipated, beating predictions of 32 cents per share and $12.32 billion revenue. Despite beating predictions, revenue is still a 14% decline from the same period of the prior year.

"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," said Chris Liddell, chief financial officer at Microsoft. "We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions."

Microsoft is betting on Windows 7, Exchange and Office 2010 to boost revenue and expectations for the new financial year. The strong earning reports come a day after Windows 7 was released and shortly before the NASDAQ is due to start trading in America. Initial pre-market trading has Microsoft trading up nearly 9% on the news at the time of writing.

View: Microsoft full first quarter report

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Macs push hardware and software, and becuase MS doesn't make hardware (except accessories), Mac hasn't really put innovation into their product line. At least, they haven't built on the innovation.

ccoltmanm said,
Macs push hardware and software, and becuase MS doesn't make hardware (except accessories), Mac hasn't really put innovation into their product line. At least, they haven't built on the innovation.


Yeah that Microsoft Xbox thinger I have to plug into something else... yes they do make hardware! xbox is a computer they devloped it and produced it

neufuse said,
Yeah that Microsoft Xbox thinger I have to plug into something else... yes they do make hardware! xbox is a computer they devloped it and produced it

You can't really compare the console market against the computer market.

neufuse said,
Yeah that Microsoft Xbox thinger I have to plug into something else... yes they do make hardware! xbox is a computer they devloped it and produced it

It's not a computer. It's a Games Console. A good Games Console, btw. ;).

ccoltmanm said,
Macs push hardware and software, and becuase MS doesn't make hardware (except accessories), Mac hasn't really put innovation into their product line. At least, they haven't built on the innovation.

What on earth are you defining as "hardware"?

Brendando said,
It's not a computer. It's a Games Console. A good Games Console, btw. ;).


anything that has a CPU is a computer.... and it is one at that, just locked down to playing games and other "approved" activities

Exactly ... also Microsofts sales volumes, diversity and profit margins are totally different. Apple on the other hand is reliant on the iPhone and big markups, a market which is very volatile and in a year could have lost a huge chunk of their market share on phones (not saying that it definitely will happen).

Its hardly surprising Microsoft haven't matched an increase in 47%. (I can't even imagine how they would manage that)

I know this is profits, but it similarly ridiculous to comparing Nokia loosing a couple of % on their 50% market share in a year... in comparison to Apple quadrupling in size. (it not surprising once doesn't do the same as the other)

When you start from low you can keep hitting insane double digit profit %, it's not all that hard when the initial numbers are small. But every company hits a point where double digit grown isn't possible anymore. That doesn't mean that even a 4% gain in profit doesn't equal a ****load of money though.

MS profit down 18% vs same quarter last year doesn't mean they lost money, infact they still made money. The key here is why, and the why is also clear, people are holding off on buying Windows till 7 is out, now that it's out, along with other new versions that are out now and don't count in the quarter they just reported, things will be different, dramatically different, next time around. This you can bet on.

Alex_The_Cat said,
I wonder what all those former employees, who have been fired earlier this year are thinking about this...

What, compared to people who lost their jobs in pretty much every other business in the US and around the world?

Alex_The_Cat said,
I wonder what all those former employees, who have been fired earlier this year are thinking about this...


They're probably thinking about where they can find a new job first.

GP007 said,
They're probably thinking about where they can find a new job first.


Personally, I'm not terribly worried for anyone who's got the name "Microsoft" on their resume.

_dandy_ said,
Personally, I'm not terribly worried for anyone who's got the name "Microsoft" on their resume.

I can't tell if you're being a dick, or actually complimenting the abilities of MS workers.

Kirkburn said,
I can't tell if you're being a dick, or actually complimenting the abilities of MS workers.


4 of my previous coworkers have gone to work for MS in Redmond, and all but one have eventually left (for various reasons that are irrelevant to this discussion).

Even during the current economic downturn, they all mention that they've had enough offers to afford to pick and choose, and they all say that it's the MS reference on their résumé that allowed them to get chosen ahead of others.

If that makes me a dick, you'll have to elaborate on how you arrived to this conclusion.

_dandy_ said,
4 of my previous coworkers have gone to work for MS in Redmond, and all but one have eventually left (for various reasons that are irrelevant to this discussion).

Even during the current economic downturn, they all mention that they've had enough offers to afford to pick and choose, and they all say that it's the MS reference on their résumé that allowed them to get chosen ahead of others.

If that makes me a dick, you'll have to elaborate on how you arrived to this conclusion.


Phew, it's a compliment :)

Sorry about that, but it's easy to misinterpret your comment as an insult to anyone who worked for MS (i.e. that you didn't care for such people!)