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Microsoft Server and Tools Business Boasts Double-Digit Growth

By ServerWatch Staff (Send Email)
Posted April 23, 2012


Microsoft (NASDAQ: MSFT) has announced quarterly revenue of $17.41 billion for the quarter ended Mar. 31, 2012, a 6 percent increase from the prior year period. Operating income, according to Microsoft's financial statement was $6.37 billion, up 12 percent from the prior year period.

The Server & Tools business posted $4.57 billion in third-quarter revenue, a 14 percent increase from the prior year period, driven by double-digit revenue growth in Microsoft SQL Server and more than 20 percent growth in System Center revenue.

The Microsoft Business Division reported $5.81 billion in third-quarter revenue, a 9 percent increase from the prior year period, reflecting the continued strength of Office 2010 with businesses and consumers. Dynamics posted an 11 percent revenue increase from the prior year period, with Dynamics CRM revenue growing more than 30 percent.

The Windows and Windows Live Division posted revenue of $4.62 billion, a 4 percent increase from the prior year period. Strong Windows 7 adoption continued with enterprise desktops running Windows 7 now up to 40% worldwide.

"We saw strong demand for our business desktop and infrastructure offerings,” said Peter Klein, chief financial officer at Microsoft. "Solid revenue growth and continued cost discipline drove double-digit operating income growth."

The Online Services Division reported revenue of $707 million, a 6 percent increase from the prior year period, and operating loss improvement of approximately $300 million.

Net income and diluted earnings per share for the quarter were $5.11 billion and $0.60 per share, compared with $5.23 billion and $0.61 per share, respectively, in the prior year period. Prior year net income and diluted earnings per share included a $461 million or $0.05 per share tax benefit primarily related to a tax settlement with the U.S. Internal Revenue Service.

"We’re driving toward exciting launches across the entire company, while delivering strong financial results," said Steve Ballmer, chief executive officer at Microsoft. "With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."

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