Windows 7 boosts Microsoft revenues
All things considered, Microsoft had a good 2009. After a couple of tough years which saw Gates’ reign come to an end and Ballmer’s start, the pain of Vista, the pain of Zune, and more besides, 2009 can be considered a win for the company. Its latest financial results are proof positive of this, and they’ve been underlined by the success of Windows 7.
Windows 7 was never going to be make-or-break for Microsoft, but its launch was important. After the supposed and real failure of Vista to impress consumers or sell in huge numbers, Microsoft needed its latest operating system to do just that. And it pulled it off.
This, according to ZDNet, is the main reason for Microsoft’s very impressive financial results for its second fiscal quarter. This covered October to December, and included the launch of Windows 7, and the usually hardy holiday season. The Zune HD also sold in good numbers, and the whole PC industry bounced backed in the latter half of the year, which all contributed to Microsoft’s success.
In its latest earnings report, Microsoft stated $19.02 billion in revenues, up a whopping 14 percent on the previous year. Net income was $6.66 billion, which barring the obvious devilish overtones is a truly impressive result, rising 60 percent in the space of 12 months. Earnings per share were 74 cents, up 57 percent on a year ago. All of which outstripped analysts’ forecasts by a considerable margin.
Chief Financial Office Peter Klein said in a statement:
Exceptional demand for Windows 7 led to the positive top-line growth for the company. Our continuing commitment to managing costs allowed us to drive earnings performance ahead of the revenue growth.
Exceptional demand indeed, as Microsoft reported having sold 60 million copies of Windows 7 in the last quarter. Which, as already reported, far outpaced sales of Vista over the first period of availability. Office also sold well over 2009 as a whole despite many people waiting for the new and improved Office 2010.
The question now is whether Microsoft can continue this upward trend with the momentum of Windows 7 sales pushing it onwards. I personally think 2010 is set to be a great year for the company as everything (apart from Windows Mobile 7) seems to be in place and ready for takeoff.
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