Microsoft revenue hits $9.1B in Q1

Computerworld - Microsoft Corp. today posted its first-quarter 2005 financial results, reporting revenue of $9.19 billion and net income of $2.9 billion. That net income figure was up 11% over the $2.6 billion in net income from the same quarter a year ago.
The figures exceeded the company's own guidance issued in July, when it estimated that its earnings would be between $8.9 billion and $9 billion for the quarter, which ended Sept. 30.
The $9.19 billion in revenue represented a 12% increase over the $8.22 billion posted during the same period one year ago. Basic and diluted earnings per share were 27 cents each, 2 cents per share higher than the company had forecast. That was 3 cents per share higher than earnings per share during the same quarter one year earlier.
"We've had a strong beginning to what we expect will be a very good year, with continued growth in both our commercial and consumer businesses," Microsoft Chief Financial Officer John Connors said in a statement. "This quarter, we had a very healthy commercial server and desktop business driving double-digit revenue growth, and we expect to continue the trend of growing revenue faster than expenses as we work to make each of our businesses more efficient and profitable."
Revenue from Windows and other client software totalled $2.99 billion for the period, up 6.5% from the $2.8 billion recorded one year earlier.
Revenue grew by 18.8% in the company's server software and tools division, which booked $2.24 billion in revenue, compared to $1.88 billion a year earlier. The company's MSN online services division saw revenue rise by 10%, to $540 million from $491 million one year earlier.
The first-quarter figures were off slightly from the company's fourth-quarter 2004 results of $9.29 billion (see story). For the full 2004 fiscal year that ended June 30, Microsoft reported revenue totaling $36.8 billion.
For the second fiscal quarter, which ends Dec. 31, the company estimated revenue will be between $10.3 billion and $10.5 billion, with diluted earnings per share expected to be 28 cents, including stock-based compensation expense.
For the full 2005 fiscal year, which ends next June 30, the company said it expects revenue to be between $38.9 billion and $39.2 billion, with diluted earnings per share between $1.07 and $1.09, including stock-based compensation expenses.

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