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October 29, 2010

Microsoft sees revenue growth of 25%; profits climb

Net income increases 51% compared to same quarter prior year

By CBR Staff Writer

Microsoft has reported revenue of $16.20bn for the quarter ended 30 September 2010, an increase of 25% compared to $12.92bn in the same period of the prior year.

The increase in sales has been attributed to the robust consumer and corporate demands for the company’s Windows, Office and other products.

The company has posted a net income of $5.41bn or $0.62 per share in the third quarter of fiscal 2011, an increase of 51% compared to $3.57bn in the same quarter previous fiscal.

Operating income of $7.12b has been reported in the third quarter, which is an increase of 59% compared to $4.48bn in the same quarter prior year.

The deferred revenue of $1.47bn in the prior year was related to the Windows 7 Upgrade Option programme and sales of Windows 7 to OEMs and retailers before general availability in October 2009.

Without the deferral in the prior year, first-quarter growth rates for revenue and operating income were 13% and 20%, and growth in net income and earnings per share were 16% and 19%, respectively.

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Microsoft chief financial officer Peter Klein said this was an exceptional quarter, combining solid enterprise growth and continued strong consumer demand for Office 2010, Windows 7, and Xbox 360 consoles and games.

Microsoft chief operating officer Kevin Turner said the company is seeing improved business demand and adoption, and its enterprise agreement rates were strong, reflecting business commitment to Windows 7, Office 2010, and server and database products.

Microsoft saw year-over-year growth across all business segments during the quarter, and reaffirms operating expense guidance of $26.9bn to $27.3bn for the full year ending 30 June 2011.

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