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your Windows® embedded community
Windows For Devices
your Windows® embedded community
For its fiscal year ended June 30, 2011, Microsoft reported record revenue of $69.94 billion, a year-over-year increase of 13 percent. Yearly operating income, net income, and diluted earnings per share were $27.16 billion, $23.15 billion, and $2.69 billion, year-over-year increases of 13 percent, 23 percent, and 28 percent, respectively, according to the company.
Peter Klein (pictured), Microsofts chief financial officer, stated, "Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion."
Kevin Turner, Microsoft's chief operating officer, stated:
"We continue to see strong business demand across all of our products, from small businesses all the way up to the largest global enterprises. Our move to cloud services continues with the release and momentum of Office 365 and growth in Windows Azure. Were providing our customers seamless and powerful ways to move to the cloud, and we are well positioned for the coming year."
Nearly 4 million Windows 7 licenses per day
Microsoft has five divisions: Windows & Windows Live, Business, Server and Tools, Online Services, and Entertainment and Devices (EDD). The last of these, EDD, used to be responsible not only for consumer products such as the Xbox 360 gaming console and Zune music player, but also for Microsoft's embedded OSes, including Windows Embedded Standard, Windows XP Embedded, Windows CE, and Windows Phone 7.
Last September, Microsoft said it was moving its Windows Embedded Business from EDD to the Server and Tools (STB) division. The reorg recognizes that embedded devices are increasingly becoming part of the enterprise, and also that their manufacturers generally produce other enterprise tools, the company said at the time.
The reorganization has not made it easier to discern just how much Microsoft's Windows Embedded operating systems contributed to the company's bottom line. (And, adding to the confusion, Windows Phone 7 remains part of EDD, even though Windows phones employ a version of Microsoft's Windows Embedded Compact operating system.)
Still, STB had another great quarter. The division was up in revenue 12 percent year over year, to a total of $4.64 billion, Microsoft said. Growth in Windows Server, SQL Server, and Enterprise Services revenue were all up by double digits, the company added.
As for EDD, Microsoft again touted its alliance with Nokia regarding Windows Phone 7, but did not spell out how the nascent smartphone operating system might (or might not) have contributed to divisional revenues. But yet another great quarter was had by the Xbox 360 console (unit sales up 18 percent to more than 1.7 million for the quarter) and Kinect controller, according to the company. Reaching $1.49 billion, EDD's revenue was said to be up 30 percent year over year, though it was down sequentially from last quarter's $1.94 billion.
On the positive side, Windows and Windows Live revenue was up sequentially from the third quarter's $4.45 billion, and was apparently buoyed by Windows 7 adoption -- more then 400 million licenses of the operating system have now been sold, according to Microsoft.
Last quarter, Microsoft cited only 50 million such licenses, suggesting that Redmond shifted 350 million copies of Windows 7 in just three months. That equates to a rate of nearly 4 million copies per day!
Echoing recent statements by market research firms, Redmond said consumer PC sales were down 2 percent. However, it added, business PCs are up 8 percent year over year, and enterprise deployments of Windows 7 "continue to accelerate."
Further information
To see Microsoft's own earnings release, including results for the company divisions not detailed above, plus the PowerPoint presentation for investors from which the above graphs were extracted, go to the company's Investor Relations website.
Jonathan Angel can be followed at www.twitter.com/gadgetsense.
