World’s largest software company Microsoft announced second quarterly revenue of $20.89bn for the recent quarter ended December 31, 2011.
It is an increase in revenues by 5%, compared to the same period a year ago.
Operating income declined by 2.5% to $7.99bn, down from $8.17bn in the year ago period.
Net income remained almost flat at $6.62bn, compared to $6.63bn in the same quarter a year ago.
According to Microsoft, 2010 second quarter results include recognition of $224m of deferred revenue related to the Office 2010 technology guarantee programme.
Microsoft CEO Steve Ballmer said Microsoft delivered solid financial results, even as it prepared for a launch year that will accelerate many of Microsoft’s key products and services.
"Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012," Balmer added.
The entertainment & devices division and the online services division were the major contributors to the company’s growth.
The entertainment & devices division posted revenue of $4.24bn, which is an increase of 15% from the year ago period, on the back of its increased Xbox 360 installed base that currently adds up to nearly 66m consoles and 18m Kinect sensors. Xbox LIVE member globally increased to 40m members, an increase of 33% from the same year period a year ago.
Online services division reported revenue of $784mn, which is an increase of 10% from the year ago period, as Bing organic US market share grew to 15.1%.
Microsoft has revised its operating expense guidance between $28.5 billion and $28.9 billion for the full year ending June 30, 2012.
Kevin Turner, chief operating officer at Microsoft said Microsoft is seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.
