The company also took a $1.42B charge related to fines from the EU
Microsoft Corp. on Thursday reported quarterly earnings in line with Wall Street expectations, but down slightly from the same quarter last year, reflecting the challenges the software developer faces in an increasingly competitive market.
For the three months ended March 31, Microsoft reported revenue of $14.45 billion, in line with the consensus polled by Thomson Financial and up from revenue during the same quarter last year, when Microsoft brought in $14.40 billion.
Diluted earnings per share were 47 cents, higher than Thomson Financial's consensus of 44 cents and down from the 50 cents reported during the same quarter last year.
However, Microsoft's earnings-per-share results included a charge of 15 cents per share for the fine the European Commission charged the company for failing to comply with the commission's antitrust ruling.
Operating income was $4.41 billion, down from $6.59 billion for the same period last year. Operating income in the most recent quarter included a charge of $1.42 billion for the EC fine.
Microsoft highlighted growth in its entertainment and devices segment, which increased revenue by 68% compared with the same quarter last year, primarily because of sales of Xbox 360 game consoles. Cumulative console sales passed 19 million during the quarter, an increase of 74% from a year ago, Microsoft said.
Another bright spot was the company's server and tools business, which grew revenue by 18% compared with the same quarter in 2007. During the quarter, Microsoft made major product launches for Windows Server 2008, SQL Server 2008 and Visual Studio 2008.
While results for the quarter were mostly flat, Microsoft revised its expectations for its full fiscal year, which ends on June 30. It now expects revenue in the range of $66.9 billion to $68 billion instead of its previous prediction of $59.9 billion to $60.5 billion. Diluted earnings per share for the year should be $2.13 to $2.19, rather than $1.85 to $1.88, Microsoft said.
In addition, the company now expects operating income of $26.7 billion to $27.4 billion, instead of $24.2 billion to $24.4 billion.
Just yesterday, Microsoft rival Apple Inc. posted strong earnings for its second fiscal quarter, with Macintosh computer sales overriding weak growth in iPod shipments. Apple's net revenue was $7.51 billion for the quarter that ended March 29, a 43% rise from last year's second quarter. Apple's net profit was $1.05 billion, up from the $770 million it reported last year. Earnings per share were $1.16.
Microsoft Corp. on Thursday reported quarterly earnings in line with Wall Street expectations, but down slightly from the same quarter last year, reflecting the challenges the software developer faces in an increasingly competitive market.
For the three months ended March 31, Microsoft reported revenue of $14.45 billion, in line with the consensus polled by Thomson Financial and up from revenue during the same quarter last year, when Microsoft brought in $14.40 billion.
Diluted earnings per share were 47 cents, higher than Thomson Financial's consensus of 44 cents and down from the 50 cents reported during the same quarter last year.
However, Microsoft's earnings-per-share results included a charge of 15 cents per share for the fine the European Commission charged the company for failing to comply with the commission's antitrust ruling.
Operating income was $4.41 billion, down from $6.59 billion for the same period last year. Operating income in the most recent quarter included a charge of $1.42 billion for the EC fine.
Microsoft highlighted growth in its entertainment and devices segment, which increased revenue by 68% compared with the same quarter last year, primarily because of sales of Xbox 360 game consoles. Cumulative console sales passed 19 million during the quarter, an increase of 74% from a year ago, Microsoft said.
Another bright spot was the company's server and tools business, which grew revenue by 18% compared with the same quarter in 2007. During the quarter, Microsoft made major product launches for Windows Server 2008, SQL Server 2008 and Visual Studio 2008.
While results for the quarter were mostly flat, Microsoft revised its expectations for its full fiscal year, which ends on June 30. It now expects revenue in the range of $66.9 billion to $68 billion instead of its previous prediction of $59.9 billion to $60.5 billion. Diluted earnings per share for the year should be $2.13 to $2.19, rather than $1.85 to $1.88, Microsoft said.
In addition, the company now expects operating income of $26.7 billion to $27.4 billion, instead of $24.2 billion to $24.4 billion.
Just yesterday, Microsoft rival Apple Inc. posted strong earnings for its second fiscal quarter, with Macintosh computer sales overriding weak growth in iPod shipments. Apple's net revenue was $7.51 billion for the quarter that ended March 29, a 43% rise from last year's second quarter. Apple's net profit was $1.05 billion, up from the $770 million it reported last year. Earnings per share were $1.16.