Info-tech

Office, Xbox sales boost Microsoft Q4 profits 30%

PTI New York | Updated on March 12, 2018 Published on July 22, 2011

Mr Kevin Turner, Chief Operating Officer, Microsoft (file photo)

Software giant Microsoft Corp has reported a 30 per cent surge in net income to $5.87 billion in the three months period ended June 30, 2011, helped by strong sales of its Office software and Xbox game console.

The entity had a net income of $4.52 billion in the April-June period of 2010, Microsoft said in a statement.

Microsoft’s quarterly profit was up on strong results of its server and tools unit, Office software as well as the entertainment and devices unit that includes the company’s game console.

The company registered a record revenue of $17.37 billion for the fourth quarter ended June 30, 2011, an 8 per cent increase from the same period of the previous year.

“Throughout fiscal 2011, we delivered to market a strong line-up of products and services which translated to double-digit revenue growth, and operating margin expansion. Our platform and cloud investments position us for long-term growth,” the Microsoft Chief Financial Officer, Mr Peter Klein, said.

The entertainment and devices unit, which sells the firms’ video game and phone products, registered a record 30 per cent growth in revenue due to the robust sales of the Xbox and the new hands-free gaming Kinect add-on.

Office 2010 sales increased 7 per cent in the fourth quarter while revenues from server and tools during the period climbed 12 per cent, the fifth consecutive quarter of double-digit growth.

During the fourth quarter, online services revenue grew 17 per cent, while revenue in the Windows division declined one per cent.

For the fiscal year ended June 30, 2011, Microsoft posted a 23 per cent growth in net income to $23.15 billion and record revenue of $69.94 billion, a 12 per cent increase from the previous year.

“We continue to see strong business demand across all of our products, from small businesses all the way up to the largest global enterprises,” Microsoft Chief Operating Officer, Mr Kevin Turner, said.

On its business outlook, Microsoft said, looking ahead, the company reaffirms fiscal 2012 operating expense guidance of 3 per cent to 5 per cent growth from 2011, or $28 billion to $28.6 billion, it said.

Published on July 22, 2011
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