On Apr 18th, 2013, Microsoft released its third-quarter report for the revenue of $20.94 billion. The third quarter ended on Mar 31st, 2013. This quarter’s revenue is a net result of operating income of $7.61 billion, net income of $6.06 billion and diluted earnings of $0.72 per share. The financial report describes the net recognition of the revenue associated with Office Upgrade offer and pre-sale, Windows Upgrade offer, Devices Division Video Game Deferral and Entertainment.
Steve Ballmer, CEO at Microsoft speaks about the report,
“The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype. While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”
Microsoft published the following report that displays non-GAAP financial information. The table offers a better understanding of the Microsoft’s performance in the third quarter.
Microsoft further describes the various elements of revenue report, including Microsoft Business Division, Windows Division and Entertainment and Devices Division.
Microsoft Business Division: The revenue of nearly $6.32 billion was posted through the Microsoft Business Division. This quarter’s revenue is an 8% increase from the earlier year period. The non-GAAP revenue associated with Office Upgrade Offer and Pre-Sales and Microsoft Business Division saw an increase of 5% in the third quarter. Revenue of $5.04 billion was recognized for the Server & Tools business, which is an immense increment of 11% from the previous year period. The increment is driven by the tremendous revenue growth in SQL Server and System Center. The division is described as follows:
Windows Division: The Windows Division pulled revenue of $5.70 billion in the third quarter with an increase of 23% from the earlier year period. The Online Services Division posted revenue of $832 million; which is an 18% increase from the prior period. At the same time, a growth of 22% was seen in Online advertising revenue, which is driven by the increment in revenue per search. This report is described in further table.
Entertainment and Devices Division: The overall income growth in the third quarter is a sum of revenue increment in various departments. The Entertainment and Devices Division also pulled a revenue of $2.53 billion. This is an incredible increment of 56% from the prior year period. The revenue associated with the Video Game Deferral, the non-GAAP revenue of the Entertainment and Devices Division, increased by 33% in the third quarter. Even the Xbox LIVE posted 18% increase than the previous period; which is driven by 46 million members all across the globe. It is described in the following table.
During the third quarter, Microsoft also launched the new Office, which enhances productivity and the user experience. It exhibits new mobility, social, and cloud features. There was also an addition of Surface Pro to the Surface family of devices.
Microsoft clarifies that the statements in this release are “forward-looking statements” which are based on current assumptions and expectations. However, these are subject to risks and uncertainties like intense competition in all of Microsoft’s markets; execution and competitive risks; significant investments in new products and services that may not be profitable; and Microsoft’s continued ability to protect its intellectual property rights.
