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Microsoft Reports Record First-Quarter Results, Including Dynamics Growth

by Jason Gumpert
Editor, MSDynamicsWorld.com
October 20 2011

Microsoft Corp. today announced record first-quarter revenue of $17.37 billion for the quarter ended Sept. 30, 2011, a 7% increase from the same period of the prior year.  The company noted in the earnings announcement  that the Dynamics business grew 17% in the quarter starting since July. Also in the Microsoft Business Division, Lync, SharePoint, and Exchange revenue also grew by "double digits".

Operating income, net income, and diluted earnings per share for the quarter were $7.20 billion, $5.74 billion, and $0.68 per share, which represented increases of 1%, 6%, and 10%, respectively, when compared with the prior year period.  These net earnings and earnings per share met but did not exceed the average analyst estimates.

Also notable among the product-focused announcements was the completion of the Skype acquisition.

Microsoft Business Division saw revenue of $5.6B (up 8% from the same in 2010) and operating income of $3.7B (up 6% from the same in 2010). Microsoft Office generates 90% of the MBD revenue.  From the regulatory filings:

"Business revenue increased $326 million or 8%, primarily reflecting growth in multi-year volume licensing revenue, licensing of the 2010 Microsoft Office system to transactional business customers, and a 17% increase in Microsoft Dynamics revenue. Consumer revenue increased $75 million or 7% due mainly to strong sales of the 2010 Microsoft Office system."

Other highlights included:

  • The Server & Tools segment posted $4.25 billion in first quarter revenue, a 10% increase over the prior year period and the sixth consecutive quarter of double-digit revenue growth.
  • Windows and Windows Live Division revenue was $4.87 billion, a 2% increase over the prior period, in line with the PC market. Microsoft has sold 450 million licenses since launch, although it saw only 2% ...

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About Jason Gumpert

As the editor of MSDynamicsWorld.com, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at jgumpert@msdynamicsworld.com.

Prior to co-founding MSDynamicsWorld.com, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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