Microsoft Upbeat on 2012 Prospects

From PC World: Microsoft executives say they're pleased with the company's quarterly earnings reported on Thursday, saying they were solid during a challenging economic times and reflect growth in new markets.

"I'm pleased with our performance this quarter. Despite a challenging PC market, we delivered solid financial results," said Peter Klein, Microsoft's chief financial officer, during a conference call to discuss the results. "We saw strong demand for our business products and services and had a record holiday season, driven by the unique entertainment experience we've built with Xbox 360."

Revenue for the quarter, ended December 31, hit US$20.89 billion, up 5 percent compared with 2010's second fiscal quarter, which included recognition of $224 million of deferred revenue related to the Office 2010 technology guarantee program. Net income was $6.62 billion, or $0.78 per share, down from $6.63 billion, or $0.77 per share. Microsoft missed on the consensus revenue expectation of $20.93 billion from financial analysts polled by Thomson Reuters, but exceeded their earnings-per-share forecast of $0.76.

"We're well-positioned for future growth," Klein said, adding that revenue grew across all geographies, and particularly so in emerging markets..

The company's Business Division generated $6.28 billion in revenue, up 3 percent year on year, and up 7 percent excluding the Office 2010 recognition of deferred revenue. Almost 200 million licenses of Office 2010 have been sold since its launch 18 months ago, the company said. Exchange and SharePoint revenue grew 10 percent, while revenue from Lync and Dynamics CRM grew more than 30 percent.

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