Windows sales beat analyst predictions
Sales of Windows to businesses up in first quarter of 2012
Microsoft saw an upturn in sales of Windows to businesses in the first calendar quarter of 2012, beating analyst expectations.
The company reported an 8% year-on-year rise in systems sales to companies, while sales to consumers remained flat, driving the Windows and Windows Live Division of the company to a 4% rise in revenue for the quarter ended 31st March, to $4.62 billion. Analysts had widely predicted a slump in PC sales, but shipments actually increased by 2%, according to IDC and Gartner.
Strong Windows 7 adoption continued with enterprise desktops on Windows 7 now up to 40% worldwide.
For the quarter overall, Microsoft posted a 6% growth in revenue, to $17.41 billion, and a 12% rise in operating income, up to $6.37 billion.
"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."
Microsoft's Server & Tools division saw revenue rise 14% to $4.57 billion, driven by double-digit revenue growth in SQL Server and more than 20% growth in System Center revenue.
The Microsoft Business Division reported a 9% year-on-year rise in revenue, to $5.81 billion, with strong sales of Office 2010 and an 11% increase in from the Dynamics business.
The Online Services Division reported revenue of $707 million, a 6% increase from the prior year period, and operating loss improvement of approximately $300 million.
The Entertainment & Devices Division posted revenue of $1.62 billion, a decrease of 16% from the prior period due to a soft gaming console market.