Microsoft earnings on target or slightly ahead on adjusted basis
On a non-GAAP basis, adjusting for the deferral of revenue for the company’s Windows and Office upgrade offers and several other items, revenue was $22 billion with non-GAAP profits of of 81 cents a share. For the quarter, the software giant posted GAAP revenue of $21.46 billion and profits of 76 cents a share.
Street consensus called for $21.53 billion and 75 cents a share.
“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” CEO Steve Ballmer said in a statement. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”
--The company’s Windows Division posted revenue of $5.88 billion, up 24%. The company has sold over 60 million Win 8 licenses to date. On an adjusted basis, revenue was up 11%.
--Server & Tools revenue were $5.19 billion, up 9%.
--Microsoft Business Division, which includes Office, had revenue of $5.69 billion, down 10%. On an adjusted basis, revenue as up 3%.
--Online Services Division revenues were $869 million up 11%.
Entertainment and Devices Division had revue of $3.77 billion, down 11%, or down 2% on an adjusted basis to reflect deferred revenue.
The company affirmed its previous forecast for FY 2013 operating expenses of $30.3 billion to $30.9 billion.