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Microsoft’s Q3 profit climbs as PC market tumbles

Microsoft Q3 earnings: Microsoft's profit climbs as PC market tumbles

Expectations were high ahead of Microsoft’s fiscal third-quarter earnings report on Thursday. The PC industry saw a devastating decline in the March quarter but while its vendor partners took a big hit thanks to lackluster Windows 8 demand, industry watchers still saw Microsoft’s profit climbing 13.3% thanks to strong software sales. According to a Thomson Reuters poll of Wall Street analysts, Microsoft was expected to report earnings of $0.68 pre share, or $5.78 billion, on $20.51 billion in revenue. The numbers are now in and Microsoft bucked the PC sales trend while handily beat estimates, posting a profit of $0.72 per share, or $7.61 billion, on $20.5 billion in sales.

In the same quarter last year, Microsoft earned $0.60 per share, or $5.11 billion, on revenue totaling $17.41 billion.

The company’s Windows division racked up sales totaling $5.70 billion in the March quarter, up 23% from the same quarter last year, and its business division grew 8% year-on-year to $6.32 billion.

Microsoft noted in its report that CFO Peter Klein is leaving the company at the end of the current fiscal year, and the company intends to name a successor in the coming weeks.

“I’ve had a great experience as CFO and overall in my time at Microsoft,” Klein said in a prepared statement. “We have an incredibly strong finance organization, and I’m looking forward to working with my successor on the transition through the end of the fiscal year.”

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.