Microsoft (MSFT): second quarter of 2011 - the most profitable in the industry
Disclaimer: This post was written by me as a private person. This post is part of a series of articles on IT company reporting.
The IT industry is growing rapidly after the crisis year, giving record numbers among all companies. Today Microsoft summed up the results of its second quarter of the fiscal year. The main questions before this were about whether the company will be able to maintain its growth rate and whether it will be possible to stay ahead of Apple in terms of net profit, especially after the new peaks of the latter. Microsoft succeeded in both.
In the second quarter, the company showed a record $ 19.95 billion in revenue, a growth of 15% over the year, and a net profit of $ 6.63 billion . Profit remains the highest in the industry, the main engine of which during this Christmas period was primarily the 8 million Kinect gaming devices sold. In addition, Microsoft set its new record of $ 0.77 in earnings per share and showed the sixth consecutive quarter growth operating margin.
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As usual, there is a publicly available press release of the company, a conversation with investors, slides and digital indicators .
Today's conversation with investors was on duty, which was especially noticeable after announcements about new appointments last week with competing friends Apple and Google . Microsoft CTO Peter Kline led the discussion, and analysts' questions were only in the financial plane.
A brief report on the departments of the corporation:
In general, the results were positively perceived by the market, during the day the shares rose to $ 29.34 per share. The current value after the close of trading is $ 28.87.
Analysts point out that Kinect’s influence on the company's financial performance is indeed great and for the first time in a long time, new profits are based not only on “classic” products - above all, Windows and Office. Although Apple’s second-quarter revenue is higher, the company remains the most profitable in the industry.
The IT industry is growing rapidly after the crisis year, giving record numbers among all companies. Today Microsoft summed up the results of its second quarter of the fiscal year. The main questions before this were about whether the company will be able to maintain its growth rate and whether it will be possible to stay ahead of Apple in terms of net profit, especially after the new peaks of the latter. Microsoft succeeded in both.In the second quarter, the company showed a record $ 19.95 billion in revenue, a growth of 15% over the year, and a net profit of $ 6.63 billion . Profit remains the highest in the industry, the main engine of which during this Christmas period was primarily the 8 million Kinect gaming devices sold. In addition, Microsoft set its new record of $ 0.77 in earnings per share and showed the sixth consecutive quarter growth operating margin.
')
As usual, there is a publicly available press release of the company, a conversation with investors, slides and digital indicators .
Today's conversation with investors was on duty, which was especially noticeable after announcements about new appointments last week with competing friends Apple and Google . Microsoft CTO Peter Kline led the discussion, and analysts' questions were only in the financial plane.
A brief report on the departments of the corporation:
- Windows and Windows Live
This quarter is the year of the Windows 7 operating system. The main results are more than 300 million licenses sold and more than 20% of installations on computers connected to the Internet. 90% of organizations have at least begun the formal process of transition to a new OS.
WWL's revenue was $ 5.05 billion, which is higher than the previous three quarters, but lower than the result of a year ago - then in connection with the launch of the product, the figure was $ 7.19 billion
Traditionally, there is an overview of the entire PC market as a whole - the last quarter showed a new record of 90 million units.
The business segment of new computers is growing faster than mass, the share of netbooks is decreasing due to new devices, laptops continue to grow at the same pace. - Server and tools
Server division - record revenue of $ 4.39 billion
A year after the release of Windows Server 2008 R2, Microsoft’s market share continued to grow for the fourth quarter in a row.
The strong growth of virtualization and management products (System Center) is double digits. - Online services
Microsoft's online division continues to be the only loss in the company.
Despite record revenue of $ 690 million, a net loss was $ 543 million, compared with $ 463 million a year earlier.
Nevertheless, revenue from online advertising grew by 23%, the share of the Bing search engine in the United States reached a record 12%, ahead of the “market leader”.
Bing continues to evolve; in the last quarter, he continued to integrate with Yahoo, and also began social integration with Facebook. - Microsoft Business Division
Office 2010 shows new records - in the mass market it grows 50% faster than Office 2007 for the same period. This makes Office 2010 the most successful end-user company product.
Revenue - a record $ 6.03 billion for the quarter. Revenue growth on new company contracts - more than 40%.
Double-digit growth percentages also show Sharepoint, Lync, Dynamics CRM.
Cloud solutions in this segment are implemented for example the state of California, the US Department of Agriculture, Dupont, the University of New York.
All prior subscription to the Office 365 cloud service was used on the first day of availability. - Entertainment and Devices
As stated above, 60 million Kinect devices were sold in 60 days, making it the best-selling gadget ever !
Xbox 360 is the fastest growing gaming console, growing by 21% year on year to 6.3 million units sold. The number of subscribers to the Xbox LIVE service grew by 30% to 30 million people.
At the CES conference, Kinect versions of Netflix, ESPN, Hulu Plus and AvatarKinect services were announced.
Also this quarter, the company launched devices based on Windows Phone 7 in 30 countries and 60 operators. 2 million licenses were sold, 24,000 developers were registered.
In general, the department showed a record $ 3.7 billion in revenue (an increase of 55%), and for the first time net income reached $ 1 billion in net profit. I recall that the department was unprofitable a little more than a year ago.
In general, the results were positively perceived by the market, during the day the shares rose to $ 29.34 per share. The current value after the close of trading is $ 28.87.
Analysts point out that Kinect’s influence on the company's financial performance is indeed great and for the first time in a long time, new profits are based not only on “classic” products - above all, Windows and Office. Although Apple’s second-quarter revenue is higher, the company remains the most profitable in the industry.
Source: https://habr.com/ru/post/112702/
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