04/24: Microsoft Reports Third Quarter Revenue
Posted by Patrick
From the press release:
Todd Bishop and Jessica Mintz interpret the results.
Microsoft Corp. today announced third-quarter revenue, operating income and diluted earnings per share of $14.45 billion, $4.41 billion and $0.47, respectively. Operating income and earnings per share results included a charge of $1.42 billion, or $0.15 per share, for the European Commission fine. Income taxes were reduced by $0.15 per share for the resolution of a tax audit.
“Our third-quarter results demonstrate the benefit of our diversified business model,” said Chris Liddell, chief financial officer of Microsoft. “Our broad span across geographies, product categories and customer segments is a tremendous asset and supports our outlook for double-digit revenue, operating income and earnings per share growth for this fiscal year and also for fiscal year 2009.”
Entertainment and Devices revenue for the quarter grew 68% over the comparable period last year driven by robust demand for Xbox 360 consoles. Cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago. Server and Tools revenue growth of 18% added to its string of consecutive double-digit revenue growth quarters, which now stands at 23.
“The breadth of our product offerings and our ability to provide solutions across a range of customer and partner needs paid off again this quarter. The third quarter also kicked off the largest enterprise platform launch in our company history, which highlights Windows Server 2008, SQL Server 2008 and Visual Studio 2008,” said Kevin Turner, chief operating officer of Microsoft. “These new products strengthen our ability to help business customers and partners save money, optimize their people, processes and technology, and position IT as a strategic asset for their businesses.”
Business Outlook
Microsoft management offers the following guidance for the quarter ending June 30, 2008:
• Revenue is expected to be in the range of $15.5 billion to $15.8 billion.
• Operating income is expected to be in the range of $5.8 billion to $6.2 billion.
• Diluted earnings per share are expected to be in the range of $0.45 to $0.48.
Management offers the following preliminary guidance for the full fiscal year ending June 30, 2009:
• Revenue is expected to be in the range of $66.9 billion to $68.0 billion.
• Operating income is expected to be in the range of $26.7 billion to $27.4 billion.
• Diluted earnings per share are expected to be in the range of $2.13 to $2.19.
Additional details on fiscal year 2009 guidance will be provided in the fourth-quarter earnings announcement and during the company’s Financial Analyst Meeting on July 24.
“Our third-quarter results demonstrate the benefit of our diversified business model,” said Chris Liddell, chief financial officer of Microsoft. “Our broad span across geographies, product categories and customer segments is a tremendous asset and supports our outlook for double-digit revenue, operating income and earnings per share growth for this fiscal year and also for fiscal year 2009.”
Entertainment and Devices revenue for the quarter grew 68% over the comparable period last year driven by robust demand for Xbox 360 consoles. Cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago. Server and Tools revenue growth of 18% added to its string of consecutive double-digit revenue growth quarters, which now stands at 23.
“The breadth of our product offerings and our ability to provide solutions across a range of customer and partner needs paid off again this quarter. The third quarter also kicked off the largest enterprise platform launch in our company history, which highlights Windows Server 2008, SQL Server 2008 and Visual Studio 2008,” said Kevin Turner, chief operating officer of Microsoft. “These new products strengthen our ability to help business customers and partners save money, optimize their people, processes and technology, and position IT as a strategic asset for their businesses.”
Business Outlook
Microsoft management offers the following guidance for the quarter ending June 30, 2008:
• Revenue is expected to be in the range of $15.5 billion to $15.8 billion.
• Operating income is expected to be in the range of $5.8 billion to $6.2 billion.
• Diluted earnings per share are expected to be in the range of $0.45 to $0.48.
Management offers the following preliminary guidance for the full fiscal year ending June 30, 2009:
• Revenue is expected to be in the range of $66.9 billion to $68.0 billion.
• Operating income is expected to be in the range of $26.7 billion to $27.4 billion.
• Diluted earnings per share are expected to be in the range of $2.13 to $2.19.
Additional details on fiscal year 2009 guidance will be provided in the fourth-quarter earnings announcement and during the company’s Financial Analyst Meeting on July 24.
Todd Bishop and Jessica Mintz interpret the results.
