Microsoft's huge Q1: profit up 51%, revenue up 25%

Steve Ballmer (Der Tommy @ Picasaweb)
By Richi Jennings. October 29, 2010.

Microsoft last night beat the street with its quarterly earnings and profit announcement. No wonder Steve Ballmer's seemed more upbeat recently. In IT Blogwatch, bloggers also make the inevitable Apple comparisons.

Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention How not to make dry ice...

(MSFT) (AAPL)

Joab Jackson has just the facts:

The results were, overall, a major improvement from the prior year, results from which were sullied by the global recession ... a 51% increase from the same period a year before. ... [Microsoft] also reported a 25% increase in revenue ... $16.20 billion.

...

Office ... grew by 15%, thanks to ... the new version, Office 2010. ... [It] stands in contrast with the increased wariness that the investment industry has shown for Microsoft. ... At the Microsoft Professional Developers Conference.
M0RE

Nick Farrell keeps his eye on it:

Software imperium Microsoft ... which has been written off by the mainstream press because it was not Apple ... has been doing rather well for itself over the last few months. ... Shareholders however were not that enthusiastic ... shares only rose by one percent. If Apple had made the same announcement, share prices would have eclipsed the sun.

...

The Server and Tools unit posted a $1.63 billion operating profit on revenue of $3.96 billion. ... Subscriptions of its still new Windows Azure grew 40 percent. ... Microsoft said that while it has seen a shift from low-end PCs to higher-end models, it had not seen a significant impact from tablets such as Apple's iPads.
M0RE

Here's Mary Jo Foley, in a similar vein:

In spite of all the recent “Microsoft is dead” articles, it looks like the company is still quite alive. ... Bill Koefoed, head of Microsoft investor relations, said the company had not seen a “material shift” from low-end PCs to tablets.

...

It’s easy to see why the Softies are claiming they aren’t worried. Results for the combined Windows/Windows Live division were impressive. ... Microsoft execs continue to insist that there are slates/tablets in the pipeline ... some of which will debut this year and some next year.
M0RE

But MG Siegler flexes his fanboi muscles to quip thuswise:

$16.2 billion in revenue [is] a very strong number. ... But just 10 days ago, Apple posted their revenues for this past quarter. The result there? $20.34 billion.

...

Microsoft still has a lead in profit ... but that’s because one is mainly a software maker (huge margins), while the other is mainly a hardware maker (lower margins).
M0RE

And Daniel Eran Dilger denotes the differences:

Apple's business is vastly different ... with most of the company's income coming from consumer hardware products, supported by growing sales of music and software.

  Microsoft makes the majority of its revenues from licensing deals with PC makers and corporations ... and, conversely, has repeatedly failed to find much success in the competitive consumer markets.
M0RE

Meanwhile, Bill Gibson snarks it up:

Why hasn't anyone been comparing Apple to Philip Morris? They both make products that kill you slowly from the inside.
M0RE
 

And Finally...

How not to make dry ice

 
 
Don't miss out on IT Blogwatch:

Richi Jennings, your humble blogwatcher
  Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. A cross-functional IT geek since 1985, you can follow him as @richi on Twitter, pretend to be richij's friend on Facebook, or just use good old email: itbw@richij.com.

You can also read Richi's full profile and disclosure of his industry affiliations.

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