Microsoft Q4 net up 30 % to $ 5.87 bn
Software giant Microsoft Corp has reported a 30 % surge in net income to $ 5.87 billion in the three months period ending June 30, 2011 helped by strong sales of its Office software and Xbox game console.business Updated: Jul 22, 2011 14:59 IST
Software giant Microsoft Corp has reported a 30 % surge in net income to $ 5.87 billion in the three months period ending 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 rises 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 lineup 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," Microsoft Chief Financial Officer Peter Klein said.
The entertainment and devices unit, which sells the firms's video game and phone products, registered a record 30 % growth in revenue due to the robust sales of the Xbox and the new hands-free gaming Kinect add-on.
Office 2010 sales increased by 7 % in the fourth quarter while revenues from server and tools during the period climbed 12 %, the fifth consecutive quarter of double-digit growth.
During the fourth quarter, online services revenue grew 17 %, while revenue in the Windows division declined one %.
For the fiscal year ended June 30, 2011, Microsoft posted a 23 % growth in net income to $ 23.15 billion and record revenue of $ 69.94 billion, a 12 % increase from the prior year.
"A strong year of double-digit increases in revenue and earnings is a real credit to all of our Microsoft employees and partners around the world.
"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 Kevin Turner said.
On its business outlook, Microsoft said, looking ahead, the company reaffirms fiscal 2012 operating expense guidance of 3 % to 5 % growth from 2011, or $ 28 billion to $ 28.6 billion, it said.