‘Brisk' XP sales can't save Microsoft Q3 results

Microsoft's fiscal third-quarter revenue climbed 13 per cent from a year ago, to $US7.25 billion, helped along by what it said were brisk sales of its recently launched Windows XP operating system. But the results fell short of what financial analysts had been expecting.

Net income for the period, to March 31, was $US2.74 billion, including an $847 million after-tax gain from the sale of its Expedia online travel subsidiary and an $806 million after-tax charge related to investments. That's an improvement on the $2.45 billion in net income reported in the same quarter a year ago.

Earnings per share came in at $0.49, including a $0.15 gain on the Expedia sale and a charge of $0.14 for the investment impairments. Earnings per share last year chimed in at $0.44.

Windows XP shipped on nearly 60 per cent of all new PCs sold during the quarter, marking a faster penetration rate than any of Microsoft's previous operating systems, the company said. That helped drive revenue growth of 11 per cent from what Microsoft calls its desktop platforms products.

John Connors, Microsoft's chief financial officer, described the revenue growth as solid and said operating results exceeded the company's expectations.

The figures still fell short of expectations, however. On average, financial analysts had been looking for revenue of $7.34 billion and earnings of $0.51 per share, according to Thomson Financial/First Call.

"While we look forward to slightly improved PC growth rates for the next quarter, our expectations for enterprise IT spending levels continue to be quite modest,'' Connors said.

Microsoft shares on the Nasdaq closed at $56.37 ahead of the results, down 0.46 per cent on the day. In the after-hours markets, the stock quickly sank almost $4, to $52.72.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?