Windows up, Office down in Microsoft’s latest quarter

Microsoft grew revenues by 3% to $21.5 billion in its most recent financial quarter, as a sharp increase in sales at its Windows division was offset by a 10% drop for the Office unit.

Revenue at the software giant’s Windows Division grew 24% year-on-year to $5,9 billion, thanks of course to the release of new operating systems Windows 8. Microsoft reiterated that it has sold over 60 million Windows 8 licenses since its launch in October last year.

But the Business Division, which sells the Office desktop productivity suite, saw revenue slide 10% to $5.7 billion. The new version of the suite, Office 2013, is due out in the first half of this year, so businesses may be deferring upgrades until then.

During the quarter in question, also launched Windows Phone 8, the latest version of its mobile operating system. The company did not provide specific Windows Phone 8 sales figures – it bundles the mobile OS into its Entertainment and Devices division, which also sells the Xbox 360 gaming console. This division saw an 11% increase in sales to $3.8 billion.

"Windows Phone sales were over four times higher than they were last year and at CES this year more partners were announced, as the Windows Phone ecosystem continues to grow," said Chris Suh, Microsoft’s general manager of investment relations.

Microsoft’s enterprise business fared well, with the Server & Tools division growing sales 9% year-on-year to $5.2 billion due to increased uptake in its SQL Server and System Center products. The Online Services Division reached revenue of $869 million, an 11% increase year on year as the company pointed to growth in its Lync, Sharepoint and Exchange services.

Net income for quarter was $6.6 billion, down 4% from a year ago and missing investment analysts predictions.

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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