SOFTWARE COBBLER Microsoft posted its fiscal first quarter 2014 earnings on Thursday, beating analyst estimates with $5.2bn in net profit.
Microsoft pulled in revenue of $18.53bn in the quarter, more than analyst expectations of $17.79bn and up from $16.01bn in the year ago quarter. The firm also shocked with the news that it took home $5.2bn net profit in the quarter and had operating income of $6.33 billion, up from $4.47bn and $5.3bn in the same quarter last year.
These figures come despite a struggling PC market, although Microsoft reported that Windows revenue from PC makers was down seven percent in the quarter. It said that, perhaps surprisingly, its Surface tablets division helped make up the shortfall with $400m revenue from tablets and showing "sequential growth in revenue and units sold over the prior quarter".
Microsoft did not reveal how many Surface tablets it sold during the quarter, but these figures are an improvement from earlier this year when it admitted it had taken a $900m loss on its Surface tablets. On its earnings call on Thursday, the firm said that its Surface RT tablet has been selling better than the Surface Pro, likely because of Microsoft's continued price cuts.
Microsoft CEO Steve Ballmer said, in what could be his last earnings call at the company, "Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers.
"Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices." "
Microsoft Bing also did well, with search and ad revenue up 47 percent, and Microsoft showed growth in the enterprise market with commercial revenue growing 10 percent to $11.20bn.
Microsoft COO Kevin Turner said, "We continue to execute well across our businesses and we are seeing robust demand for our enterprise products and cloud services. Strong customer adoption of Office 365, Azure, and Dynamics CRM Online is accelerating our business transition to the cloud." µ
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