Microsoft sees $16.2 billion in Q1 net revenues, 25% increase year-over-year

By on Oct 28, 2010 at 4:45 PM
General October 28, 2010

Fresh news out of Redmond. Software giant Microsoft has just posted earnings for Q1 of their fiscal year 2011, and the vitals all look good as Microsoft raked in $16.2 billion in revenues; a 25% increase from the same period in 2010. The company posted a net income of $5.41 billion which translated into $0.62 earnings per share; a 51% and 55% increase respectively when compared with Q1 of fiscal year 2010.

“This was an exceptional quarter, combining solid enterprise growth and continued strong consumer demand for Office 2010, Windows 7, and Xbox 360 consoles and games,” said Peter Klein, Microsoft’s CFO. “Our ability to grow revenue while continuing to control costs allowed us to deliver another quarter of year-over-year margin expansion.”

Although inconsequential on the balance sheet, this quarter did mark the first time in fifteen years that Cupertino, CA based Apple, Inc. outperformed Microsoft in revenue; Apple reported $20.34 billion in revenues during the same period. Regardless, Microsoft still — through its focus on highly profitable software (not hardware) — did generate more profit than the iPhone maker… and paid its shareholders a dividend.

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  • Johnathan

    So Apple made 4 billion more dollars wow!!!!!

    • David

      No … it sold $4 billion more. MS made $5.41 billion compared to $4.31 billion for Apple.

      • Captain Finance

        David since when did I die and make you captain?

      • Johnathan

        @ David you are right after I hit submit I knew i eff up

      • Sandy S. Schwartz.

        @ Johnathan … never admit fault or a flaw.

      • Johnathan

        @ Sandy thanks for the legal advice

  • Sandy S. Schwartz.

    I’m a contract attorney in greater NYC area. I would say my opinion is pretty valuable. The reason’s Microsoft is doing well:

    a) Exposure (amt of machines with the excellent Windows 7)
    b) expected value of future windows phone 7. It has a wonderfully beautiful interface and the power of MS behind it.
    c) Xbox 360 just gets it right.

    • tom

      a) exposure is never an issue for MS. Over 90% of the PC uses windows, a migration from XP/Vista to 7 is natural for “most” consumers and corporations

      b). How do you know Windows phone 7 will do well? (Do you have a time machine?) You really think MS could take a big bite out of the 3 way battle between iOS,Android and BB6 ?

      c) xbox 360 maybe doing well (so far)

      Your opinion may be valuable in the contract. You could get in a lot of trouble from the law society by making such a claim. For financial analysis matter, I think you should speak to a CFA and CPA.

      • DumbBurglar

        C) So far? Xbox is the same as point A… with the install base and everyone connected to Xbox Live, Xbox 360 gets it right and will continue to do so. Sales have been slowing for BOTH the 360 and Wii because you’re hitting that saturation point where everyone who’s wanted one, has one. PS3 sales are just now finally starting to catch up and overtake sales of the other consoles, but again, that’s because everyone alreayd has a 360 or Wii and the PS3 is finally hitting price points that consumers are willing to pay.
        4 years of MS raking it in w/ the 360 and you’re going to say ‘so far’? Do you get paid to hate?

    • jaymax

      Since you are providing your opinion for free, it has no value.

      • tom

        She is associating herself with misleading opinion, that could cost her license.

        If this poster is not “Sandy S. Schwartz”, then this person is impostor which is a crime. BGR probably has the IP.

  • LJohn

    By this time next year, BGR will be reporting that for the first time ever, AAPL beat MSFT in profits. You heard it here first.

    • TheNewReign

      Actually, BGR will be reporting that in regards to Apple’s Q1 FY2011 and Microsoft’s Q2 FY2011.

      Apple is forecasting $23 Billion in revenue for Q1 and since they always low ball their guidance it will probably be $25-$26 Billion in revenue and $6-$7 Billion in profit.

      More importantly though, Microsoft’s numbers don’t go anywhere from here. For Microsoft’s to see quarterly growth continually YOY WP7 will have to be a smash and here is why:

      Windows is losing market share to Mac OS X (no matter how little it may seem) and even if that reversed Microsoft could not grow Windows to be any more prevalent.

      Office, again, the product is as big as it can get.

      XBOX, while finally making money, the division can has huge competition within the market and therefore will not see anything but incremental gains (if not losses).

      WP7, this product has to be HUGE for MS. This product needs to be as dominate as iOS has been for Apple. The reason I didn’t list Android is that Android is not a money maker on the level that iOS for Apple. If WP7 doesn’t dominate in this next year, Microsoft’s numbers will continue to be outstanding and make the company money but the shareholders will continue to witness the stock price between $25-$35 dollars a share like the last eight or so years.

      • TheTrueNewReign

        XBOX is not scared of Apple like Nintendo is. Maybe you need to check you facts.

      • superchunk

        You have no idea what you’re talking about.

        Xbox is a console. Something Apple failed at making before and has no interest as a company of jumping into again. They make multipurpose devices who may happen to play some games. Xbox is a games device that happens to have some multipurpose features. Xbox has more to fear in terms of Playstation and whatever Nintendo creates.

        Nintendo is also not scared of Apple as again, Apple makes multimedia devices who have computing purposes first and gaming as a side feature. These types of devices have always existed. PCs have always had FAR more casual gamers than any gaming device no the planet. However, Nintendo has always been highly profitable and in the last few years, even more so than Sony’s entire company.

        The 3DS will be a tremendous hit and sell another 100million devices and a billion pieces of software. The next Nintendo console may or may not dominate the market like the Wii did, but it will be profitable as Nintendo is always profitable.

        All Nintendo needs to do, which is obvious if you’ve paid any attention to the 3DS and their changes to Wii recently, is add multimedia features to their next products, especially internet capabilities.

  • Apple’s Lion

    Notice they havent priced me yet? I’ll be somewhere between free and 129.99. That’s because they have no idea what I’m worth and nobody is excited for me. Mission control looked confusing, full screen apps should have aways been available and the Mac App store will be free with Snow Leopard within ninety days.

    • jaymax

      In addition, few really want to pay for what is essentially a service pack.

      • Apple’s Lion

        Thank you jaymax for paying attention to this comment which I’m surprised has gone virtually ignored. I feel strongly about it. I got a new macpro with snow leo. a few months ago and see no compelling reason to upgrade if its any more than 20 bucks.

      • delusion FTL

        The area of apple you support is the one that makes them the least money. It may be gone in a few years.

  • Tariq Aziz

    They make me use Windows 95 in my cell but it is still excellent. Saddam made us use Tandy’s 1000′s. Try playing Lotus on a Tandy while multitasking Photoshop.

  • Perspective

    Microsoft has to pay a dividend since it’s share price has been flat for ten years. I’ll take the $220 my $89 AAPL shares have gained over the last couple years over the MS dividend.

  • The Premium Thought Air Force

    Steve Ballmer does not have good hair. I’m not really sure how they make any money.

  • NO HOMO

    we getting money baby!!!!!

    • P Diddy

      We won’t stop.

      • fonzworth bentley

        here to hold your umbrella mr diddy

      • P Diddy

        Get in line fonz. And call me Sir Doctor P or I shall induce Tachycardia upon you.

      • fonzworth bentley

        sorry sir doctor P daddy

  • Larry Igor Longgrass II

    The PRIMARY reason people use MS products is because they have no money for an Apple.

    • hgcowner

      Sorry the reason why pc’s are more common is because apple hardware is so FREAKING SLOW for the price your paying with no functionality, only good looks

      no core i7 quad in ANY of their laptops yet on a PC laptop you can get one for $899 with 4GB of ram
      no apple products have USB3
      no apple products have eSATAp or even just esata
      no apple laptops or desktops have hdmi (only the macmini and atv)

      there is more software for windows
      there are more games for windows
      games run faster on windows on the same computer (see all the slow ass fps people are getting on steam games on osx compared to windows)

      also people dont want to be locked down to apple’s bs, some people want to choose the hardware on their own

      im happy to pay $2000 for a laptop, but it better be $2000 worth of performance (i preordered a G53JW-A1 with 2x patriot inferno 120GB’s and 8GB of ram)

      i aint paying $2K for some POS with a core2duo and non upgradeable anything.

      same with a netbook, $999? no problem but it better have a sandforce controlled SSD, 4-8GB of ram, USB3.0, HDMI, 8 hours battery life, and maybe a multi touch screen

    • TheNewReign

      Actually that is not true. People use Microsoft products because they either are fine with the status quo or they don’t take into account TCO.

      When given the choice and given all the information people will generally chose Apple products. Evidence?:

      Apple opened it’s first retail store in May of 2001.
      In 2001 Apple had total sales of $5.36 Billion for FY 2001.

      Apple has 318 stores open now and for the FY 2010 just ended they had revenues of $65.22 Billion.

      Once they gave themselves the ability to inform customers of their products customers clearly began making different choices in regards to platforms.

      • TheTrueNewReign

        You’re wrong. The reason people choose apple is endustry design. Check your fact!

      • TheNewReign

        Whatever helps you sleep at night.

        As an investor I know two things for certain:

        1. Microsoft shareholders wish for more from their investment.

        2. Apple investors know they not only get more but that more will be more next year.

        When all else fails, money is the only thing that really means anything in business.

      • TheTrueNewReign

        Honestly New Reign its hard to say that MAC OS is better than windows. I have over 500 viruses via my mac client until i used CLAMxAV to rid them. Windows would offer service packs of what we will have to pay for in lion. its all about the design.

      • DumbBurglar

        ‘endustry’… lemon scent or regular? Though, I don’t think its prudent to use furniture cleaner on your Mac.

  • Vijay

    More profit equates to smarter decisions. Smarter decisions are made by smarter people. Smart people create smarter products like Windows, Office, Kinect etc.

    So, aapl still got to expand their brains 25% more to catch up with MS. So, at the moment the best tech company on the planet it MS.

    Any arguments against this?

  • Scott Pendergrass

    My name is Scott and I’m from Riverside California. Out here many of us applaud the great strides Microsoft has made with the graphical interface. Go MS!!!!

  • Marco

    At the end of the day… it’s not about the sales. It’s about the PROFITS! And Microsoft brought in a shit load more profit than Apple did! Woot Woot! :)

    The bottom line = everything!

  • Neo

    Damn it must be that Xbox.

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  • DumbBurglar

    That’s funny… CNN money a couple of days ago said MS was a dying consumer brand. LMFAO. F*** CNN. (Wait, that’s not a pro-MS sentiment, that’s just an all-around anti-CNN sentiment. They have tech news written by 5th graders).

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