Microsoft reports profit growth, beats earnings estimates
Microsoft announced increases in revenue, operating income, and net income in the quarter ended March 31, 2013, beating Wall Street's average estimate of 68 cents per share by delivering 72 cents.
The Microsoft Business Division (MBD) posted $6.32 billion of revenue, an 8% increase from the prior year period. During the quarter, Microsoft launched the new Office 2013.
MBD reported a 13% increase in Microsoft Dynamics revenue in the quarter compared with the quarter ended March 31, 2012. And Dynamics saw an 11% revenue increase in Dynamics revenue for the last nine months compared with the previous year. Last quarter, Dynamics revenue increases were reported at 12% for three months and 11% for six months compared to the same quarter the previous year.
MBD operating income decreased in the nine month comparison, due mainly to lower revenue and higher sales and marketing expenses, offset in part by lower research and development expenses, the company stated in its regulatory filings. Operating income rose in the last three months compared to the previous year.
Microsoft shares rose in after-hours trading following the announcement.
The Server & Tools business reported $5.04 billion of revenue, an 11% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.
The Windows Division posted revenue of $5.70 billion, a 23% increase from the prior year period. Adjusting for the recognition of revenue related to the Windows Upgrade Offer, Windows Division non-GAAP revenue was flat. During the quarter, we added to the Surface family of devices with Surface Pro.
The Online Services Division reported revenue of $832 million, an 18% increase from the prior year period. Online advertising revenue grew 22% driven by an increase in revenue per search.<... class="become-member ms-auto me-auto">
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