Microsoft Income Up 23% in Fiscal Q1 2008 on Skyrocketing Revenue

By Scott M. Fulton, III | Published October 25, 2007, 4:53 PM

In early numbers from Microsoft prior to its quarterly financial results call to analysts this afternoon, the company reported revenue gains of 27% annually to $13.76 billion, and net income nicely higher by 23% annually to $4.29 billion, in what the company is calling its fastest first quarter of growth since 1999.

In the early afternoon statement, the company is crediting increased consumer demand for Windows Vista, primarily the Premium Edition, though analysts are likely to ask whether the Vista "sales mix" is actually weighted more toward pre-installations. The release of Halo 3 will also have played a factor, but certainly not to the tune of several billion more dollars in revenue in three months. All that means the company's stellar performer could turn out to be, once again...SQL Server, which has blossomed to becoming a principal profit center whose growth rivals its applications division.

For more:

Nate Mook: Can Microsoft Make Vista More Compelling?
Scott Fulton: Can Vista Be Credited with Microsoft's Stellar Q1 Gains?

Comments

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If Microsoft really wants to make more money they need to add more DRM. That way more people will buy Vista, it's that simple. I know what I'm talking about.

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Say hello the the Xbox360 and Halo3 quarterly spike effect! (obveously next quarter will go back to normal)

Dont make me laugh MS and try to spin it (even in the slightest) to say that Vista had any positive effect. Vista sucks, anyone with a brain knows it. Every singe company that we consult for requested that Vista be uninstalled and reverted back to XP. Thats thousands and thousands of pissed off customers. Dont worry MS, your Xbox division is now your best division. Its saving your asses big time.

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"That's thousands and thousands of" ...

what? Limited examples. You deal with "thousands and thousands" of companies? Wow, Are you a Fortune 500 company? I deal with less than a hundred companies and most are either on Vista or migrating to it very soon. None are complaining. Stop with the fanboy crap and usual FUD. It's a software product, not a religion.

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He's following El Dingo's tips for Trolling quite remarkably, wouldn't you say?

We're moving to vista slowly over the next 6 months, as our systems come up for replacement. There may be a few stragglers, but we should be 90% moved over by that time. Several of the companies we work with have already begun the move and many of the other's were working with are planning on starting within the next year.

Amazingly, we're not working with a single company that has bucked the Vista path. A few have expressed concern, and rightly so, but with testing, we'll likely be able to ally their concerns.

It's a software product, not a religion.

Exactomundo. It is business though, which to some is more mind-altering than religion...

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If you have good computer hardware there is nothing wrong with Vista. I run Ultimate at home at is running great. Can't wait for more directX 10 games to come out.

Good try at being a troll.

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Ditto...

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same here runs rock solid

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Yep, me too.

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Well well well, Microsoft continue to enjoy vast profits
(and could pay for the entire - mk1 & 360 XBox venture in less than 1/2 a years profits including the additional costs of the extended warranty).

But how is life in the other camp?

Sony released its Q2 financials yesterday (period ending Sep 30).
The Game Division lost almost every dollar of net revenue the Electronics Division earned.

Sony called out that it had to write down existing PS3 inventory to lower value; that it was selling PS3 below manufacturing cost and all this led to almost $1 billion in losses this summer in the Gaming Division.

Since then -- mark that: since then -- they reduced the PS3 price AGAIN.
I can't imagine the Gaming Division red ink that will be in the Q3 financial report released around Jan 23rd 2008.

Sony were close to losing $900 Million last quarter.

With the Christmas rush, Sony's gaming division could realistically lose more in Q4 than the entire XBOX 360 warranty/repair expansion is going to cost MS.

I can't wait to see the numbers.

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Microsoft touted that product activation would mean less piracy and more profits for the the company. MS said that with increased profits, they would be able to lower the cost of their products. Being that office and vista are more expensive in the direct comparisons to previous versions on average, i wonder if MS will start lowering prices on their products.
no!! I don't hate ms and i am not slamming them i am just curious to see if they will follow through with what they tell the public

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MS said that with increased profits, they would be able to lower the cost of their products.

When did they ever say this?

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I must have missed that memo. Can you cite your source for this claim that they would lower costs?

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Many many years ago. I think wpa became an issue around 1999 to 2000. I *believe* when privacy concerns related to wpa were being thrown at microsoft, they [MS] had said that lower costs *could* be a benefit. They never said lower pricing *would* be a benefit. I guess i should have used better word choice. honestly, i was just curious as to opinion. whether this is fact or not you do the research because honestly this is a public forum and any joe shmoe like myself can post. I am sure you can find falsities based on misconception of fact or phrasing. I may be one of them, who knows. I just can't take this news group seriously, i just like to take a break from work and see what people have to say in general. If you take these posts seriuosly and i am incorrect i do apologize. Please don't take anything i have said here as fact without you doing the research finding validity.

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would/could makes a big difference. :p

Regardless, I don't think they'll be lowering prices, but then again, if you look at XP home vs. Vista Home Premium, account for inflation, etc... Maybe they are? (Don't know the inflation rates since XP weas released off the top of my head)

Costs rise with any product upgrade, generally. There are exceptions, but what I think you are referring to was that they'd be able to offer the future versions at lower costs (not lower than the previous version, but lower than they would have been able to otherwise).

Confuzzled yet?

just can't take this news group seriously

Good, don't. (And it's a forum, not a news group :P) If you take it too seriously, you end up like Pitdingo. None of us wants that. ;)

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LOL perfect answer!!
and you are absolutley right, i didn't consider inflation and other costs into the picture. :)

And it's a forum, not a news group :P
DOH!!! hehe

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It's all in good fun...

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Looks like the way Vista product activation is working that it's cutting down on piracy.

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There is a perma cracked Vista Ultimate out there.. I see all over the place, and from what I understand it cant be undone with a MS patch. So i dont think so..

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well, not without forcing thousands of Dell customer (that's the "oem" patch they used, right?) to re-activate. That would be a pretty bad move.

*shrug*

Happens with every OS. No biggie.

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Dang. Revenue like that should translate into some rather nice internal budgets and hiring.

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Looks like the Xbox division turned a Q1 profit. http://www.next-gen.biz/...mp;id=7686&Itemid=2

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But they "put aside" 1.1 Billion for 360 repairs.. So that wipes it out.

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Incorrect - they took the 1.1 billion hit last quarter and still made a few billion profit.

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Good try. You just hate to see a company other than $ony make a profit. By the way how much have they earned lately.

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Even with Vista and Xbox360 repairs/flat sales they still manage make a boatload of money by overcharging and monopolistic practices

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I suggest you read the following article about how many copies of Vista Microsoft has been selling before you make comments which are not based on fact.

http://www.businessweek.com/ap/tech/D8SGHNF00.htm

After that, I suggest you read the following article about how many Xbox 360 consoles Microsoft has been selling.

http://www.betanews.com/...in_September/1192808111

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Microsoft’s entertainment division made a nice profit and Sony’s made a nice loss. Not really any other way you can twist that now is there? You are just a troll

I must admit I’m surprised myself that the Xbox is turning into profit for MS already.

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He's an anti-Microsoft trolling Sony shill, it's a waste of time to even talk to him.

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Wow a lie followed by a weeping session. It must suck to see MS succeeding and Sony going under faster than the Titanic.

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Well considering Microsoft have lost $8 billion on the Xbox division todate, I don't think things are too rosey. Sony's losses are miniscule compared to this.

This is how it works, you can make profit in a quater, and "bank it", but you can still have a loss making division.

This is WHY microsoft "put aside" $1.1Billion for Xbox repairs, from last quater, so it makes this quater look good.

Some people are easilly fooled it seems.

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Yes but they still turned a tidy profit in both quarters (amazing how your own incorrect arguements are inconsistent between posts in the same thread...)

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that's orange juice earning his paycheck

yet he's pretty bad at what he does

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Yes because obviously Microsoft and Sony are identical companies identical in size, you can easily compare them cant you? If only you would open your eyes just once so perhaps we can see a intelligent discussion come from you.
How can you even PRETEND to know how and why companies spend their money when they do?

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What did you expect, that Apple would be the only company to post gains?

And dont give me the Vista is preinstaaled on all PC's crap because OSX is preinstalled on all Apple hardware, also.

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I'm just surprised that such a big company didn't post bigger gains. Investors are pissed: you've got to beat, not meet expectations.

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I'd have a hard time b****ing about a company that is making a net profit in the billions every year.

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Err....
" Microsoft Corp. reported quarterly earnings Thursday that beat analysts estimates, citing robust demand for its Vista operating system as well as its top-selling new video game "Halo 3."

Shares of the company were up nearly 10 percent in after-hours trading.

The world's largest software maker reported a fiscal first-quarter net profit of $4.29 billion, or 45 cents per share, up 23 percent from the same quarter last year. Analysts were expecting the company to report earnings of 39 cents per share, according to estimates from Thomson Financial."

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You must be new, Zaine is an idiot.

He makes sites dedicated to a poster on here.

You could post as many facts and that MS cured all terminal diseases he would still continue to slag the company and report negative comments back.

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Zaine doesn't bother to read the article yet again.

Meh...

Trolls never do...

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He's one of my biggest fans...

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