Profits Double for Microsoft
Microsoft’s profits nearly doubled in the last quarter compared to those of the year before.
Microsoft’s $2.56 billion net profit has a lot to do with the company’s lack of legal expenses. Last year, Microsoft had settlements with Sun Microsystems as well as the European Commission on its plate.
The company’s sales of server software and Xbox consoles didn’t hurt either. Microsoft’s revenue, however, only rose to $9.6 billion from $9.18 billion. Analysts expected revenue of $9.8 billion.
Seattle P-I elaborates:
The decline in revenue growth was evident in areas including Microsoft’s biggest division, Windows for PCs. Revenue for the division rose only 2 percent in the quarter, to just under $3 billion. In the same quarter last year, the division’s revenue grew by 16 percent.
Sales of Windows preinstalled on PCs, which account for the bulk of the division’s business, met the company’s expectations in the recent quarter. But sales of Windows copies in retail stores and through volume licensing were less than expected, said Curt Anderson, Microsoft’s investor relations general manager.
Microsoft remains optimistic about the future.
As of 10 AM EDT Friday, Microsoft shares were up $0.38 or +1.55%. with a current trading price of $24.83.