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January 25, 2013

Windows 8 lifts Microsoft Q2 revenue to $21bn, but profit declines

Net income declined to $6.37bn

By CBR Staff Writer

Microsoft has reported revenue of $21.46 billion for the fiscal second quarter of 2013 ended 31 December 2012, compared to $20.88bn it reported during the same period in 2011.

The company’s revenue was $16.01 for the fiscal first quarter of 2013 before the launch of Windows 8.

For the fiscal second quarter, the company’s net income on the other hand declined to $6.37bn, or $0.76 diluted earnings per share, for the quarter, compared to $6.62bn, or $0.78 diluted earnings per share, for the same period in the corresponding year.

Operating income decreased to $7.7bn, compared to $7.9bnm for the same period last year.

The company’s Windows division posted a 24% rise in revenue to $5.88bn for the quarter and the Server & Tools business revenue grew 9% to $5.19bn.

Microsoft’s Business Division revenue declined 10% to $5.69bn and revenue from Entertainment and Services decreased 11% to $3.77bn.

The Online Services Division reported revenue increased 11% to $869m and online advertising revenue grew 15% driven by an increase in revenue per search.

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Microsoft chief financial officer Peter Klein said: "We saw strong growth in our enterprise business driven by multi-year commitments to the Microsoft platform, which positions us well for long-term growth."

"Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division," Klein said.

Microsoft sold more than 60 million Windows 8 licenses to date since its launch in October 2012.

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