Microsoft’s Q2 Profits Dip on Windows 8’s Late Resurgence
World's leading software maker Microsoft on Thursday posted its revenue results for the second fiscal quarter.
The Redmond-based company reported that its revenue stood at $21.5 billion for the quarter ending on Dec 31, 2012. Operating income and diluted earnings per share for the quarter were $7.77 billion and 76 cents per share, respectively.
The company's net income slid down to $6.38 billion in the period, down from $6.6 billion a year ago.
The revenue dip is attributed to the 10 percent decline in Microsoft Office sales which is facing a temporary pause due to the impending launch of the new version of Microsoft Office in the first quarter of 2013.
The saving grace which helped the Microsoft post a profit is attributed to the late surge in the Windows 8 OS demand. The company reported that it sold over 60 million licenses of Windows 8 OS since its release in October last year. The Windows division posted revenue of $5.88 billion, a 24 percent increase compared to last year.
- FOLLOW US
- Follow @ibtimesindia
Microsoft failed to disclose the revenue generated from its flagship Surface tablet which was launched at a lavish event in October last year.
The Entertainment and Devices division, which is responsible for Xbox consoles, posted revenue of $3.77 billion, down 11 percent compared to last year.
Soon after Microsoft reported its meager second quarter profits, its shares slid to $27.06 in after-hours trading, after closing at $27.23.
Despite Microsoft's average 2012 report sheet, the year 2013 looks promising on four reasons:
- The new version of Microsoft Office is expected to be released soon, the ubiquitous software has been a cash cow for the company since its inception and the new version is hailed to bring in more revenues in the next quarter.
- Few days back, Microsoft announced that the second iteration of the Surface Pro tablet will be released early next month. The new tablet is expected to revive the weak tablet sales.
- Speculations are rife that Microsoft is contemplating to bring in new Surface tablets in various sizes and other budget tablets in the coming future to reach out to more consumers.
- The record worldwide sales of Nokia's Windows-based Lumia smartphones have revived Microsoft's Windows Phone OS chances of gaining a formidable foothold in the global mobile OS market.
As per the latest NASDAQ report (Jan 24), Microsoft's share value is currently hovering over the $27.63, up 0.07 percent.
(With inputs from Reuters)
To contact the editor, e-mail:
- Xbox One March Update: Microsoft Rolls Out New Update in Preparation for Titanfall Release; List of Improvements
- Nokia Lumia Martini: Windows Phone Blue Handset To Appear at Nokia's April 19 Event?
- Does Windows Phone 8.1 Find A Killer App In Cortana?
- Apple Siri Has A Rival, Microsoft 'Cortana' Unveiled In A Leak [VIDEO]
- Apple Inc Accused of Tax Avoidance in Australia After Beating Samsung as Most Desired Brand in Emerging Markets
- Xbox One Update May Have External Support, Surprise Coming at E3 2014 and 'Titanfall' Season Pass Coming
- Nokia X Android Smartphone India Price Revealed; Tipped to Hit Stores in Mid-March
- Lenovo IdeaPad Yoga 2 Pro vs. Microsoft Surface Pro 2 Specs and Price comparison in Australia
- Geneva International Motor Show 2014: Apple CarPlay - From iPhone To iCar
- Windows XP Support Ends On April 8 But OS Will 'Live Long'