Microsoft Q1 Revenues Re-surface
Microsoft first quarter sales of $18.53 billion to September 30, beating analyst expectations, it said yesterday.
The results reflect the deferral of $113 million revenues related to Windows 8.1 pre-sales.
Net profits rose to $5.24 billion.
Microsoft said sales were driven by “robust enterprise sales and improving consumer demand”. Commercial revenue rose 10%, to $11.2 bn.
Devices and Consumer revenue grew 4% to $7.46 billion, likely to grow as Microsoft get bigger on hardware, releasing new Surface 2 tablets and the recent acquisition of mobile maker, Nokia.
The tech giant didn’t break down how many tablets it sold but confirmed Surface revenue grew to $400 million, with sequential growth in revenue and unit sales, compared to Q4.
During fiscal 2013, Surface sales were worth $850 million.
Windows OEM revenue declined 7%, although Windows Pro revenue grew.
“Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers,” said Steve Ballmer, Microsoft CEO.
“Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices.”
Operating income rose 19% to $6.33 billion, gross margin was $13.42 bn. Search ad revenue grew almost 50%.
Investors reacted well to Microsoft’s rise, shares rose almost 5% to $35.37- a long way from rival Google’s share price, but still, good news for the software maker looking to expand its horizons.