Microsoft has reported revenue of $12.92 billion in the first quarter of 2009, down 14% compared to $15.06 billion in the same period last year.
The company posted an operating income of $4.48 billion, down 25% compared to $6 billion in the same period last year. For the quarter ended September 30, 2009, the company posted a net income of $3.57 billion, down 18% compared to $4.37 billion in the same period a year ago. Diluted earnings per share was down 17% to $0.4.
The results reflect the deferral of $1.47 billion of revenue, an impact of $0.12 of diluted earnings per share, relating to the Windows 7 upgrade option program and sales of Windows 7 to OEMs and retailers before general availability. Adding back the deferred revenue, revenue totalled $14.39 billion, a 4% year-over-year decline, and EPS totalled $0.52 per share, an increase of 8% over the same period last year.
Revenue from Windows & Windows Live division was down to $2.6 billion from $4.3 billion, while revenue from Server and Tools segment was $3.43 billion, compared to $3.42 billion in the same period last year. Microsoft Business division revenue was down to $4.4 billion from $4.95 billion, while Online Services division, which includes the Bing search engine, was down 5.8% to $490m from $520m. Entertainment and Devices division revenue remained almost flat at $1.89 billion.
Chris Liddell, chief financial officer of Microsoft, said: “We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows. We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions.”
The company has reduced its operating expense guidance to $26.2 billion – 26.5 billion, for the full year ending June 30, 2010.
