Welcome!

Silverlight Authors: Automic Blog, Michael Kopp, AppDynamics Blog, Kaazing Blog, Steven Mandel

Related Topics: Silverlight, Microsoft Cloud, Containers Expo Blog, @CloudExpo

Silverlight: Article

‘Hey, This Windows Thing is Working’: Microsoft

Evidently 7 is Microsoft's lucky number

Evidently 7 is Microsoft's lucky number. It knocked one out of the park when it reported its calendar Q4 results Thursday.

Revenues steamed past everybody's expectation by like a billion dollars on the back on Windows 7 sales, netting earnings of $6.7 billion, or 74 cents a share, up 60%. It captured record revenues of $19.02 billion, up 14% year-over-year. Operating income came in at $8.51 billion, up 43%.

Microsoft said it recognized $1.71 billion in deferred revenue from its Windows 7 Upgrade Option Program and Win7 pre-sales to OEMs and retailers before general availability on October 22. That contributed 14 cents to earnings. Without those deferred revenues, it did a light-ish $17.31 billion in total revenues and earned 60 cents a share.

In a statement CFO Peter Klein pointed to the "exceptional demand for Windows 7." He added that "managing costs allowed us to drive earnings performance ahead of the revenue growth."

Microsoft said it moved upwards of 60 million Windows 7 licenses through its second fiscal quarter, describing the code as "the fastest-selling operating system in history."

It's still mostly talking consumer sales here (reportedly worth ~$500 million at retail) and improved PC sales (up 15%-17%); the enterprise, well, maybe the SMB, is starting to contribute a little bit. OEM revenue was up 21% ahead of the general market. It dominates netbooks. Windows revenues came to $6.9 billion, up 70%, and income close to doubled at $5.39 billion.

Servers and tools were stronger-than-expected but still flat with revenues of $3.8 billion, returning $1.49 billion. Microsoft figures it's doing slightly better than server shipments.

It described Office profits as off 3% at $3 billion because of enterprise weakness on sales of $4.7 billion versus $4.8 billion last year. Office is going to be under pressure until Office 2010 debuts in June, it said.

It also said search was improving but international rates declined. The online unit did $581 million, down from $609 million, and lost $466 million, more than the $320 million it lost a year ago, and was the only division that lost money.

Microsoft is still waiting for the great promised refresh cycle to kick in. The current quarter is generally weaker than the December quarter.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...