Microsoft reports record second-quarter earnings

Microsoft had record revenue of $11.84 billion for the financial quarter that ended December 31, 2005, the Seattle company has reported.

india Updated: Jan 27, 2006 09:39 IST

US software colossus Microsoft had record revenue of $11.84 billion for the financial quarter that ended December 31, 2005, the Seattle company has reported.

The figure represented Microsoft's best single-quarter revenue to date and was a nine per cent increase over the same quarter a year earlier.

Earnings per share were 33 cents, matching analyst forecasts, according to the company.

Operating income for the quarter was $4.66 billion, a two per cent decline from the same period in the prior year.

A company statement blamed the drop in operating income on the sales, marketing and product development expenses associated with major product launches such as the new Xbox 360 computer game console.

"The growth in our core businesses was healthy during the quarter driven by strength in Server and Tools, and the success of our Windows Client products in a robust PC market," Microsoft chief financial officer Chris Liddell said in a written statement on Thursday.

"The quarter also marked the beginning of an important product cycle for Microsoft with the launches of Xbox 360, SQL Server 2005, Visual Studio 2005 and Microsoft Dynamics CRM 3.0, all of which were extremely successful and well received by our customers," he added.

First Published: Jan 27, 2006 09:39 IST