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Microsoft sees entertainment unit struggle in quarterly earnings

Profits are down in Redmond
Fri Jan 25 2013, 01:24
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SAGGING PERFORMANCE in its entertainment and devices division dragged down Microsoft's quarterly profits, the company said on Thursday.

Microsoft said that it pulled in $21.46bn in revenue for the quarter, up three percent from the same quarter last year. Operating income, however, was down three percent from the same period in 2011.

The company noted that two of its operations suffered quarterly losses, the entertainment and devices division and the business division. Each returned double-digit losses, dropping by 11 percent.

Microsoft said that it hopes to reverse the trend and improve its business division numbers in the coming months as it launches the latest edition of Microsoft Office.

Meanwhile, Microsoft's entertainment and devices division is looking forward to seeing its numbers improve, if consumers warm up to Windows Phone 8 following its release late last year.

The company claimed that other units turned in strong performances. It said Windows revenues were up 24 per cent on the year and claimed it saw more than 60 million downloads for Windows 8.

CFO Peter Klein told reporters and investors that the company will also look to expand the scope and price range of tablets for Windows 8.

"One of the powers of the Windows ecosystem is the the variety of devices and form factors," Klein said. "We learned that continues to be important."

Microsoft also said it has high hopes for its online services division, which boosted revenues by 11 per cent, and the server and tools division, which saw revenues increase by nine per cent.

The company said that it is looking to hit a revenue target of $30.3bn this year. µ


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