Microsoft Windows division up 24% on year

Microsoft are proudly reported their revenue for the second quarter of their 2013 financial year. Company performance is strong in all areas however the Windows division is the big talking point, showing 24 percent year on year growth.

Revenue was £13,580 billion, an increase of 3 percent on the same quarter a year previous. Operating income was £4.88 billion which is a drop of 3 percent.

Microsoft renamed their ‘Windows and Windows Live Division' to simply ‘Windows Division'. This incorporates the Windows Surface tablet. Revenue for the division was up 24 percent to £3.72 billion. Operating income for this division was up 14 percent to £2.08 billion.

Arstechnica add “As is the norm for Microsoft financials at around the time of major product launches, there are substantial revenue deferrals in play that rejig the numbers a little. Both Windows 8 (launched last quarter) and Office 2013 (expected in coming weeks) went on sale before they were released. For example, anyone buying a PC with Windows 7 preinstalled in the final few months before Windows 8's release now qualifies for a Windows 8 license at no extra cost. A similar scheme is running for Office 2010 in the run up to Office 2013's launch.

Microsoft's GAAP results include this revenue in the quarter that the sale is made. However, the company also releases non-GAAP numbers that defer the revenue until the point at which the transaction is actually completed, and the license for the new software is delivered. In these results, some revenue from the last two quarters of Windows sales was held back and is now being reported (and similarly, some money for Office sales is still being held back).”

Microsoft are predicting growth across tablets, Ultrabooks, laptops and all in one systems thanks to Windows 8 and Windows RT operating systems. They have however kept quiet about how many Windows Phones or Surfaces have been sold.

Kitguru says: A very strong report for Microsoft.

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