Microsoft boosted by Windows 7
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Huge demand for new operating system pushes combined revenues up 14%, but "we are not seeing the enterprise recovery yet," says software giant
Consumer demand for the latest version of Microsoft's Windows operating system drove the company's revenues up 14% to $19.02 billion in its most recent financial quarter.
The company recorded a 60% rise in net income, up to $6.66 billion, for the three months ending December 31st 2010. Of course, year-on-year comparisons hark back the end of 2008, when Microsoft suffered some of the most challenging business conditions in its history.
The Seattle-based software giant reported around 60 million sales of Windows 7, a 70% year-on-year increase in revenues derived from the operating system line. Many of its other units, meanwhile, posted comparatively lacklustre results, in particular its business division, whose sales fell 2.8% to $4.75 billion for the quarter. Server and tools revenue showed a modest rise of 2.4% to $3.84 billion.
Chief financial officer Peter Klein told Bloomberg earlier this week that he was unsure of when an upturn in Microsoft’s business units would arrive. “What’s interesting is we were able to generate record revenue and profit on the backs of consumer demand,” he said. “We are not seeing the enterprise recovery yet. The timing of that recovery is uncertain.”
