Microsoft (MSFT): First Quarter 2011 (July - September)

    Disclaimer: This post was written by me as a private person. This post is an experiment whose start was reported by Google and Apple . I am not an expert in finance, comments will be extremely valuable!

    October is the high season for reporting among large IT companies. Today, another webcast was held with the results of Microsoft for the last quarter. Unlike Apple and Google, Microsoft has already begun fiscal year 2011 (July) - accordingly, now is the time to summarize the results of the first quarter.

    Microsoft managed to set new records, exceeding expert forecasts. Everyone can enjoy an audio recording of a speech, a press release and slides with all the details.

    If we go to the figures, the revenue (revenue) for FY11Q1 amounted to $ 16.2 billion , which is 25% higher than last year. Net income for the reporting period amounted to $ 5.41 billion, which is 51% higher than last year.

    Microsoft traditionally considers indicators and products for all business segments - the results showed growth in all areas over the past year, including a 15% increase at the start of sales of Office 2010, Xbox 360 consoles sales grew by 38% overall, and in the United States for the fourth consecutive month they show maximum result compared to all competitors. The next quarter, there has been an increase in the market share of the Bing search engine, which is accompanied by continued cooperation with Yahoo - Bing is already outstanding in the US and Canada. Despite revenue growth compared to a year earlier, the Online Services Division continues to be unprofitable, and investment is not declining. It is worth noting that Entertainment and Devices has been unprofitable for many years, but over the past quarters it has confidently turned into a plus.

    Much attention is paid to the most successful operating system in the history of the company, Windows 7, which was exactly one year old on the eve of its sales, exceeded 240 million licenses. The revenue of the Windows division grew by 66% to $ 4.8 billion.

    Today at the PDC conference a series of announcements on the Windows Azure cloud platform was made, the number of subscriptions of which increased by 40%. Sharepoint, Lync (formerly Communication Server), Dynamics CRM, and Exchange business show double-digit growth.

    From the point of view of the personal computer market, it was noted that in the reporting quarter it grew by 9-11%, in emerging markets the growth is much more than in developed ones. The company does not see users leaving from low-power computers (netbooks) to tablets. Instead, it was stated that the market for low-end computers continues to grow, and people are buying more different devices, including tablets. The latter presents a good opportunity for future business growth.

    I would like to note that the Q&A session was quite calm and businesslike - unlike the more strategic and emotional ones in the reports of Google and Apple. Perhaps this is due to the fact that Microsoft is now the beginning of the year, and not its end. In addition, there was no Steve Ballmer on the call (usually CEOs do not participate in webcasts), the lead was CFO Peter Kline.

    Most of the questions concerned the financial details of the figures, analysis of the growth of new first products compared to previous and immediate prospects.

    The beginning of the year for Microsoft was very successful, despite the record ending of the previous one. Apple has exceeded revenue in recent months, but Microsoft's net profit margin is still ahead. Google continues to grow, but remains behind.

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