Windows Demand Mitigates Microsoft’s Earnings Drop

On the heels of a successful Windows 7 launch, Microsofton Friday announced revenue of $12.92 billion for the first quarter — a 14 percent decline from the same period a year ago. However, Microsoft beat the street’s expectations and the company’s stock soared.

Net income for the quarter was $3.57 billion, or 40 cents per share. That’s an 18 percent decline from the year-ago period. But Microsoft said the results reflect a deferral of $1.47 billion in revenue relating to the Windows 7 Upgrade Option program and sales of Windows 7 to OEMs and retailers before general availability. If added back in, Microsoft would have a four percent year-over-year decline in a tough economy.

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Add comment October 23rd, 2009