Microsoft Quarterly Results Set Record

By Nick Mokey January 24, 2008

Make no mistake about it: Despite slow Vista sales, the growth of competitors like Apple and Google, and a never-ending war with piracy, Microsoft is making money hand over fist. Quarterly results announced on Friday revealed that the company’s second fiscal quarter ushered in record revenues of 16.37 billion, an increase of more than $2 billion over the last record.

Profits were up 81 percent from the same quarter last year, which was just prior to the launch of Vista. Oddly enough, Microsoft actually credits the widely-criticized operating system for its financial success, since Microsoft’s client business has grown 20 percent following its launch. “We are pleased with the progress of Windows Vista in the market,” said Kevin Johnson, president of the Platforms and Services Division at Microsoft, in a statement. “We’ve hit our stride with partners and customers and are looking forward to the release of our first service pack later this quarter.”

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Microsoft’s forecast for the coming quarters also leapt to an estimate of $59.9 billion to $60.5 billion, which should work out to around $1.85 per share in earnings for investors. The company’s stock shot up following the announcement, to a price of $34.85, a 4.8 percent gain, in early trading on Friday.

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