Fast financials let Microsoft party like it’s 1999

26 Oct 2007

Microsoft revealed last night that revenues increased 27pc to US$13.7 billion — the fastest revenue growth out of any first quarter since 1999 — boosted by demand for its Vista and the launch of Halo 3.

The company reported a net income of US$4.2 billion and earnings per share of 45 cents.

Microsoft’s businesses of Client, Microsoft Business Division and Server and Tools grew combined revenue in excess of 20pc, and experienced robust demand for Windows Vista, the 2007 Microsoft Office system, Windows Server and SQL Server.

During the quarter, Microsoft’s two consumer focused divisions passed milestones with the successful close of the company’s largest ever acquisition, aQuantive, and Halo 3 achieving the biggest entertainment launch day in history.

“This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999,” said Chris Liddell, chief financial officer at Microsoft.

“Operating income growth of over 30pc also reflects our ability to translate revenue into profits while making strategic investments for the future,” Liddell added.

Looking ahead to the second quarter Microsoft predicts revenues in the range of US$15.6 billion to US$16.1 billion and operating income of between US$5.9 billion to US$6.1 billion.

For the full year ending in June, Microsoft’s management predicts revenues in the range of US$58.8 billion to US$59.7 billion.

By John Kennedy