Microsoft reported its profits surged 81 percent on record-high revenues of 16.37 billion dollars in the last three months of 2007 due to intense demand for computer software.
SAN FRANCISCO: Microsoft reported its profits surged 81 percent on record-high revenues of 16.37 billion dollars in the last three months of 2007 due to intense demand for computer software.
"Revenue of over 16 billion dollars this quarter exceeds our previous record by two billion," said Microsoft chief financial officer Chris Liddell.
"We are extremely pleased by the broad-based strength of our business performance and field execution."
Microsoft said its net income for the quarter climbed to 4.7 billion dollars, or 50 cents per share, as compared with 2.6 billion dollars, or 26 cents a share, in the same period a year earlier.
The earnings topped expectations by Wall Street analysts that forecast Microsoft would pull in 46 cents per share on just shy of 16 billion dollars in revenues in the final quarter of 2007.
Microsoft credited its new Windows Vista operating system released a year ago with lifting sales in the business and personal computer sectors.
"We are pleased with the progress of Windows Vista in the market," said Microsoft platforms and services division president Kevin Johnson.
"We've hit our stride with partners and customers."
The proclamation contrasts complaints from Vista users that the new operating system is vexing and conflicts with commonly-used software programs.
"Vista is a nightmare," said Peter Hurme, publisher of Marine Digest magazine based in Seattle, near Microsoft's headquarters in neighboring Redmond.
"I don't know how conscious Microsoft is of this because of its constant hubris in the marketplace.
Hurme is among those convinced that aversion to Vista is reviving the popularity of the previous-generation operating system, Windows XP.
"There are a lot of companies de-Vista-izing, going back to XP," said Hurme, whose company also does contract publishing. "For us, as a publisher, it sucks."
Demand for Microsoft software including Office, Sharepoint, Exchange, and Vista remain strong, according to the US software giant.
"We are in the midst of another strong year with great momentum heading into calendar year 2008," said Microsoft chief operating officer Kevin Turner.
"We continue to see healthy demand from both businesses and consumers in the United States and our growth in emerging markets is especially strong."
Among Microsoft offerings rolled out in the last quarter of 2007 were new Zune MP3 players and upgrades to its Windows Live Online services.
Microsoft also reported a jump in sales of its Xbox 360 video game consoles during the year-end holiday shopping season. Microsoft says it has sold 17.7 million of the consoles since they debuted in November of 2005.
Unlike the many technology companies tempering forecasts in the face of US economic woes, Microsoft raised its estimate of how much money it expects to make by the time its fiscal year ends June 30.
Liddell said Microsoft should bring in from 59.9 to 60.5 billion dollars in revenues for the year and report earnings in the range of 1.85 to 1.88 dollars per share.
"No company is immune from macro-economic factors, but overall we think our company is extremely well positioned in the tech industry," Liddell said. "We actually feel very optimistic."
Liddell noted that 60 percent of last quarter's revenues came from outside the United States and that company revenue streams included for-fee online services linked to the Xbox 360 consoles in millions of homes.
Microsoft said its entertainment division, which includes game consoles and software, is on track to be profitable for the first time by the end of its fiscal year.
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