Windows 7 drives record US$19 billion revenues at Microsoft

29 Jan 2010

Sales of its latest operating system Windows 7 have helped drive record revenues of US$19 billion for Microsoft, up 14pc on last year. The company sold more than 60 million licences since it launched the OS.

Operating income, net income and diluted earnings per share for the quarter were US$8.51 billion, US$6.66 billion and US$0.74 per share, which represented increases of 43pc, 60pc and 57pc, respectively, when compared with the prior year period.

These financial results include the recognition of US$1.71 billion of deferred revenue, an impact of US$0.14 of diluted earnings per share, relating to the Windows 7 Upgrade Option Program and pre-sales of Windows 7 to OEMs and retailers before general availability.

Adjusting for the deferred revenue recognition, second-quarter revenue totalled US$17.31 billion, and diluted earnings per share totalled US$0.60 per share.

Exceptional demand for Windows 7 led to the positive top-line growth for the company,” said Peter Klein, chief financial officer at Microsoft. “Our continuing commitment to managing costs allowed us to drive earnings performance ahead of the revenue growth.”

Windows 7 and Windows Server 2008 R2 launched globally on October 22 as anticipated. Through the second quarter, Microsoft has sold more than 60 million Windows 7 licenses, making it the fastest-selling operating system in history.

“This is a record quarter for Windows units,” said Kevin Turner, chief operating officer at Microsoft. “We are thrilled by the consumer reception to Windows 7 and by business enthusiasm to adopt Windows 7.”

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years