Microsoft rounded out the first big week of earnings season with an announcement on Thursday. Unlike Google, which also reported, Microsoft safely met analyst expectations with sales of its Vista operating system solid enough to offset charges associated with the Xbox manufacturing troubles.
Within divisions, software revenue was strong. Online services had revenue of $688m versus $580m a year ago. The business division had revenue of $4.6b, up from $3.9b. The weakest link was the entertainment division, home to the Xbox, which saw sales decline 10%. The entertainment and devices unit had revenue of $1.16b versus $1.28 last year. The division posted a loss of $1.2b (versus a loss of $423m for the same period last year).
Microsoft also announced year end earnings for their fiscal year ended June 30th. In overall revenue they returned 15% growth over the prior year on revenue that exceeded $50b ($51.12b).
“Surpassing $50 billion in annual sales is a testament to the innovation and value that our product groups delivered into the marketplace, as well as the outstanding execution by our field sales, marketing teams and partners to bring that value to life with our customers,” COO Kevin Turner said in a statement.
In looking ahead , Microsoft gave guidance for next quarter saying revenue should fall in the range of $12.4b- $12.6b with earnings of 38 to 40 cents a share. The company also raised guidance for fiscal 2008, setting the range at $1.69 to $1.73 a share (up one cent on both sides of the range relative to prior estimates).
More detailed press coverage on Microsoft ’s finances can be found at: