Microsoft posts better-than-expected results for fiscal 2Q
24 Jan 2014
Microsoft Corp posted revenue and earnings for its fiscal second quarter that beat Wall Street expectations, with the company selling 3.9 million Xbox One consoles and doubling revenue from its line of Surface tablets as against the earlier quarter.
Net income in the quarter through December stood at $6.56 billion, or 78 cents per share, as against $6.38 billion, or 76 cents, a year earlier.
Revenue increased 14 per cent to $24.52 billion.
According to outgoing chief executive Steve Ballmer, the company had a ''great holiday quarter.''
Shares rose $1.66, or 4.6 per cent, to $37.74 yesterday following the release of the results, even as the stock closed the regular session up 15 cents at $36.08.
The software giant's quarterly profit was boosted by strong sales of its software and services for businesses, coupled with a slightly lower tax bill.
The company chose to not make any reference about its five-month search for a new chief executive to replace Steve Ballmer, who said in August he would retire within a year.
The company co-founded by Bill Gates 39 years ago has been an integral part of the personal computer revolution, and its Windows and Office products still dominate business desktops.
However the company was not able to correctly gauge markets in last decade under Ballmer as Apple Inc. Google Inc quickly stole a march over it in mobile computing.
According to commentators, the quarter might well be the last full one for Ballmer, and it had at least gained some traction for Surface tablet, Microsoft's long-delayed attempt to knock Apple's iPad from its dominating position.
Reuters quoted Colin Gillis, an analyst at BGC Financial as saying it was a good print to ride off into the sunset. He added, there was " still the over-arching question for this company: who's going to be the new CEO, and what direction they take."
